Corporate narrative reporting on Industry 4.0 technologies: does governance matter?
Research output: Contribution to journal › Article › peer-review
Standard Standard
In: International Journal of Accounting and Information Management, Vol. 30, No. 4, 05.08.2022, p. 457-476.
Research output: Contribution to journal › Article › peer-review
HarvardHarvard
APA
CBE
MLA
VancouverVancouver
Author
RIS
TY - JOUR
T1 - Corporate narrative reporting on Industry 4.0 technologies: does governance matter?
AU - Hussainey, Khaled
AU - Albitar, Khaldoon
AU - Alkaraan, Fadi
PY - 2022/8/5
Y1 - 2022/8/5
N2 - PurposeThis paper aims to provide early evidence on corporate transformation towards Industry 4.0 (CTTI4) in the UK, particularly by examining the effect of corporate governance on the narrative reporting of CTTI4.Design/methodology/approachThe authors analyse all UK financial times stock exchange all-share non-financial firms that have published their annual reports for the period of 2013–2018. The authors use computerised textual analysis to measure the level of corporate reporting on Industry 4.0 (I4.0) for 1,001 firm-year observations. The authors used different regression models to test the research hypotheses.FindingsThe findings contribute to the growing literature on business model transformation in UK companies towards the I4.0 strategy. The findings show that the level of reporting on CTTI4 is improving over the sample period and varies between industries. The authors also find that better governance quality enhances the level of reporting on CTTI4.Practical implicationsThe findings of this study inform decision makers and regulators about factors driving UK companies to report information about their actionable strategies to direct I4.0 endeavours.Originality/valueThe paper makes an important and novel contribution to corporate disclosure literature. So far as the authors know, it is the only paper to examine the impact of corporate governance on corporate narrative reporting on I4.0 technologies. Moreover, to the best of the authors’ knowledge, it is the first paper to show that the quality of corporate governance adds value to this strategic type of corporate disclosure.
AB - PurposeThis paper aims to provide early evidence on corporate transformation towards Industry 4.0 (CTTI4) in the UK, particularly by examining the effect of corporate governance on the narrative reporting of CTTI4.Design/methodology/approachThe authors analyse all UK financial times stock exchange all-share non-financial firms that have published their annual reports for the period of 2013–2018. The authors use computerised textual analysis to measure the level of corporate reporting on Industry 4.0 (I4.0) for 1,001 firm-year observations. The authors used different regression models to test the research hypotheses.FindingsThe findings contribute to the growing literature on business model transformation in UK companies towards the I4.0 strategy. The findings show that the level of reporting on CTTI4 is improving over the sample period and varies between industries. The authors also find that better governance quality enhances the level of reporting on CTTI4.Practical implicationsThe findings of this study inform decision makers and regulators about factors driving UK companies to report information about their actionable strategies to direct I4.0 endeavours.Originality/valueThe paper makes an important and novel contribution to corporate disclosure literature. So far as the authors know, it is the only paper to examine the impact of corporate governance on corporate narrative reporting on I4.0 technologies. Moreover, to the best of the authors’ knowledge, it is the first paper to show that the quality of corporate governance adds value to this strategic type of corporate disclosure.
U2 - 10.1108/IJAIM-02-2022-0024
DO - 10.1108/IJAIM-02-2022-0024
M3 - Article
VL - 30
SP - 457
EP - 476
JO - International Journal of Accounting and Information Management
JF - International Journal of Accounting and Information Management
SN - 1834-7649
IS - 4
ER -