Enhancing financial reporting: Challenges and Opportunities in Corporate Governance Statements
Special issue call for papers from Corporate Governance
Corporate Governance: The international journal of business in society is pleased to invite papers for a special issue on “Enhancing financial reporting: challenges and opportunities in corporate governance statements”.
Special Issue Scope:
For a longstanding period, corporate financial disclosure, including narrative disclosures in corporate annual reporting, has been on the spotlight for researchers and policymakers. Indeed, policymakers have long emphasized the importance of narrative disclosures in helping investors and stakeholders to understand the company's profile (e.g. financial performance, internal management, risks).
Recently, a new narrative report was introduced, either as a part of annual report or as a separate document to inform investors about the corporate governance practices, known as corporate governance statement. This report, based on the flexibility of the “comply or explain” principle states whether a company complies with the provisions of the corporate governance code or not and provides specific explanations in case of non-compliance. Specifically, this powerful tool gives companies the opportunity to disclose all the essential information required by stakeholders to understand the way they are governed.
However, until now companies have put more emphasis on the compliance without considering the explanations of non-compliance. In particular, as mentioned in the European Commission Green Paper “the large majority of respondents were in favour of requiring companies to provide better explanations for departing from codes’ recommendations” (European Commission, 2012, p. 6) . Further, questions have been raised about the apparent silence of the academic community regarding the essence of the compliance and regime in practice. It is therefore essential to move to the next level and explore the ways and the strategies companies use to explain and improve the quality of their CG statements. Additionally, it is fundamental to identify new approaches to monitor and/or control the information disclosed in CG statements.
Therefore, we are interested in both the conceptual and empirical studies that move towards the compliance rates and provide insights to improve the quality of the CG statements. Papers should focus on any level (e.g. companies, regulators, investors), drawing on a variety of theoretical perspectives (e.g. institutional theory, agency theory, signalling theory, stakeholder theory) and using quantitative, qualitative or mixed methodological approaches.
The purpose of this special issue is to provide advanced knowledge regarding the role, the impact, challenges and opportunities of corporate governance statements in financial reporting. Thus, sample topics might include, but are not limited to the following:
- The efficacy (or weakness) of ‘comply or explain’ principle at European level (in practice),
- Managers’ incentives to hide non-compliance and how these practically ‘work (e.g types of explanations, tactics and strategies followed by companies)
- New ways to supervise the information disclosed and strengthen the comply or explain regime (i.e. how we can create a standard and reliable framework for corporate governance reporting).
- The potential role of audit market in CG statement
- Methodological advances and innovations applicable to measure the effectiveness of ‘comply or explain’ principle in depth.
How to submit
The completed papers should be submitted online no later than 1 September 2017 at https://mc.manuscriptcentral.com/cg (note: in the dropdown menu select “special issue”). All submitted papers should not have been previously published nor be currently under consideration for publication elsewhere and should follow Corporate Governance author guidelines. For further details, visit the following link: http://emeraldgrouppublishing.com/products/journals/author_guidelines.htm?id=cg.
Dr. Michail Nerantzidis
Hellenic Open University