Tien-Shih Hsieh, Zhihong Wang and Mohammad Abdolmohammadi
This study aims to investigate whether eXtensible Business Reporting Language (XBRL) disclosure management solution improves public companies’ earnings release efficiency and…
Abstract
Purpose
This study aims to investigate whether eXtensible Business Reporting Language (XBRL) disclosure management solution improves public companies’ earnings release efficiency and mitigates earnings management.
Design/methodology/approach
This study adopts a unique survey data set from the Financial Executives Research Foundation 2013 to identify companies’ XBRL implementation strategies. Earnings release efficiency is measured by earnings announcement time lag. Multiple indicators of both accruals- and real activities-based earnings management are adopted to examine the research hypotheses.
Findings
The authors find that the disclosure management solution (DMS) XBRL implementation is positively associated with earnings release efficiency for companies with good news. The authors also find that DMS implementation strategy is negatively related to accruals-based earnings management, but positively related to real activities-based earnings management measured by abnormal cash flows.
Research limitations/implications
The results of this study can inform regulators, investors and corporate management on how XBRL adoption is associated with corporate financial reporting.
Originality/value
The study contributes to the XBRL literature by providing empirical evidence on how the strategies adopted by companies to implement XBRL may affect the results of XBRL mandatory adoption.
Details
Keywords
Zhihong Wang and Joseph Sarkis
– The purpose of this paper is to investigate whether companies’ environmental and social supply chain activities are associated with their financial performance.
Abstract
Purpose
The purpose of this paper is to investigate whether companies’ environmental and social supply chain activities are associated with their financial performance.
Design/methodology/approach
A sample from the top 500 US companies based on Newsweek's green ranking is used. Data from the Bloomberg environmental, social and governance (ESG) and COMPUSTAT financial database are used for an empirical analysis of the relationships.
Findings
Integrated sustainable supply chain management, jointly including social and environmental supply chain management, efforts is positively associated with corporate financial performance measured by return on assets and return on equity, and the positive effects can have a time lag of at least two years.
Research limitations/implications
By adopting the ESG database, the paper only tests corporate sustainability supply chain management using a binary 0-1 valuation. Three-year data period is also a limitation for an extensive time study. A research implication is that win-win benefits may accrue, but additional nuances may exist such as indirect influences that need to be studied.
Practical implications
Two major implications of this study are that organizations may wish to implement both environmental and social supply chain management simultaneously to get the greatest benefit, and that managers need to be patient about reaping the rewards of these initiatives.
Originality/value
The paper contributes to the sustainability management literature by being the first to use publicly available data to investigate the financial benefits associated with individual and joint environmental and social supply chain management activities. The paper also uses a relatively large data set from US-based companies that have not been widely studied in the supply chain management literature.