Wenzhang Sun, Jiawei Zhu and Xuhui Wang
The purpose of this study is to investigate the impact of board secretaries’ characteristics on annual report readability using an original method that evaluates the readability…
Abstract
Purpose
The purpose of this study is to investigate the impact of board secretaries’ characteristics on annual report readability using an original method that evaluates the readability of Chinese characters.
Design/methodology/approach
The authors manually collect board secretaries’ characteristics from the China Securities Market and Accounting Research database and obtain annual reports from the China Information website. Ordinary least square regression is applied to evaluate the impact, and then robustness tests and additional regression analyses are conducted.
Findings
Board secretaries’ legal-professional expertise, international expertise and role duality improve annual report readability. However, their political connections are negatively associated with it. The effect of expertise (role duality) is more pronounced for firms with lower ex ante litigation risk (board secretaries with equity holdings). Furthermore, higher readability increases the compensation of board secretaries, whereas lower readability increases their turnover. Finally, annual report readability is positively related to firm performance.
Research limitations/implications
The authors only investigate listed firms in China from 2007 to 2017 because of the difficulties of obtaining data and text mining.
Practical implications
The authors provide managerial insights for regulators aiming to establish an effective governance mechanism with Chinese characteristics. First, certain requirements for board secretaries’ expertise can improve annual report readability. Further, firms can consider appointing board members or senior executives as board secretaries to enhance disclosure quality.
Originality/value
To the best of the authors’ knowledge, this study is the first to verify the effect of board secretaries’ characteristics on disclosure quality, especially annual report readability. Moreover, this study proposes a novel measure of annual report readability for Chinese texts.
Details
Keywords
The purpose of this paper is to examine the alternative accounts produced by Green Earth Volunteers (GEV), a Chinese environmental non-governmental organisation, over a 10-year…
Abstract
Purpose
The purpose of this paper is to examine the alternative accounts produced by Green Earth Volunteers (GEV), a Chinese environmental non-governmental organisation, over a 10-year period in the context of their campaign to create visibilities about hydroelectric dam projects along the Chang Jiang.
Design/methodology/approach
Drawing on conceptions of the human–nature relationship, including those evident in ancient Chinese philosophy and mythology, and the Chinese way of viewing and resolving conflict, this paper offers an interpretive analysis of the alternative accounts of GEV in terms of their form and content.
Findings
In terms of their content, the alternative accounts reflect elements of interrelated thinking, being underpinned by a recognition of the relationship between humans and nature, which is evident in Confucianism, Taoism and ancient Chinese mythology. The strategies adopted by GEV are a non-confrontational but feasible way to promote their ecological beliefs in the Chinese context.
Practical implications
The study suggests that social and environmental accounting (SEA) in developing countries is steeped in local cultural and philosophical traditions that need to be considered and incorporated into the design of alternative accounts.
Originality/value
The study contributes to the very limited literature that offers qualitative analyses of SEA in developing countries.