Claire Marston

Bio: Claire Marston is an academic researcher from Heriot-Watt University. The author has contributed to research in topics: Investor relations & Institutional investor. The author has an hindex of 19, co-authored 36 publications receiving 3359 citations. Previous affiliations of Claire Marston include Northumbria University.

The use of disclosure indices in accounting research: A review article

Abstract: This article is concerned with the measurement of disclosure in published financial reports. In particular, the use of a disclosure index is examined by reviewing the literature that has made use of this measurement technique. Disclosure indices are extensive lists of selected items which may be disclosed in company reports. Calculating an index score for a particular company can give a measure of the extent of disclosure but not necessarily the quality of the disclosure. Items included in the disclosure index may be weighted in order to take account of the fact that some items are viewed as more important than others. The aim of this article is to bring together and summarise a selection of projects that have employed disclosure indices and to comment on the work carried out to date.

Financial reporting on the Internet by leading UK companies

Abstract: This paper examines the extent of financial information disclosure on the Internet by the largest companies in the UK in 1998. Companies were surveyed to establish whether they had a website and if so whether financial information was available. We also investigated whether that information was in summary form or whether the full annual report was available. This study finds a statistically significant positive relationship between the size of a company and the use and extent of disclosure on the Internet. There was no significant association between industry type and disclosure.

Voluntary disclosure of accounting ratios in the uk

Abstract: This paper investigates whether the voluntary disclosure of ratios in corporate annual reports can be explained by agency and signalling theory. The two theories are discussed and the applicability to explaining ratio disclosures considered. Drawing on agency and signalling theory, seven hypotheses are tested using data collected over five years, for 313 UK companies. More specifically, associations are considered between ratio disclosure and the following characteristics: company profitability; return on investment; gearing; liquidity; company efficiency; size and industry. The paper finds some evidence of an association between ratio disclosure and company performance, size and industry. The implications of these findings are considered and areas of further research discussed.

Financial reporting on the Internet by leading Japanese companies

Abstract: Financial reporting on the Internet is an activity that has increased in recent years. This paper reports the results of a survey of Internet reporting by the top 99 Japanese companies in 1998. It was found that the majority of these companies (78) had a Web site in English and that of these 68 reported some financial information with 57 providing detailed accounting information. Company size was significantly positively associated with the existence of a Web site but the extent of financial disclosure did not appear to be related to size. There was no significant association between profitability, industry grouping and overseas listing status and Internet disclosure. The survey was updated in 2001 by re‐evaluating those companies which had no Web site or only a Japanese Web site in 1998. It was found that the majority of these companies now have an English language Web site with full annual reports available.

Disclosure level and the cost of equity capital

Abstract: The effect of disclosure level on the cost of equity capital is a matter of considerable interest and importance to the financial reporting community However, the association between disclosure level and cost of equity capital is not well established and has been difficult to quantify In this paper I examine the association between disclosure level and the cost of equity capital by regressing firm-specific estimates of cost of equity capital on market beta, firm size and a self-constructed measure of disclosure level My measure of disclosure level is based on the amount of voluntary disclosure provided in the 1990 annual reports of a sample of 122 manufacturing firms For firms that attract a low analyst following, the results indicate that greater disclosure is associated with a lower cost of equity capital The magnitude of the effect is such that a one-unit difference in the disclosure measure is associated with a difference of approximately twenty-eight basis points in the cost of equity capital, after controlling for market beta and firm size For firms with a high analyst following, however, I find no evidence of an association between my measure of disclosure level and cost of equity capital perhaps because the disclosure measure is limited to the annual report and accordingly may not provide a powerful proxy for overall disclosure level when analysts play a significant role in the communication process

On making causal claims : A review and recommendations

Abstract: Social scientists often estimate models from correlational data, where the independent variable has not been exogenously manipulated; they also make implicit or explicit causal claims based on these models. When can these claims be made? We answer this question by first discussing design and estimation conditions under which model estimates can be interpreted, using the randomized experiment as the gold standard. We show how endogeneity – which includes omitted variables, omitted selection, simultaneity, common-method variance, and measurement error – renders estimates causally uninterpretable. Second, we present methods that allow researchers to test causal claims in situations where randomization is not possible or when causal interpretation could be confounded; these methods include fixed-effects panel, sample selection, instrumental variable, regression discontinuity, and difference-in-differences models. Third, we take stock of the methodological rigor with which causal claims are being made in a social sciences discipline by reviewing a representative sample of 110 articles on leadership published in the previous 10 years in top-tier journals. Our key finding is that researchers fail to address at least 66% and up to 90% of design and estimation conditions that make causal claims invalid. We conclude by offering 10 suggestions on how to improve non-experimental research.

Coping with systems risk: security planning models for management decision making

Abstract: The likelihood that the firm's information systems are insufficiently protected against certain kinds of damage or loss is known as "systems risk." Risk can be managed or reduced when managers are aware of the full range of controls available and implement the most effective controls. Unfortunately, they often lack this knowledge, and their subsequent actions to cope with systems risk are less effective than they might otherwise be. This is one viable explanation for why losses from computer abuse and computer disasters today are uncomfortably large and still so potentially devastating after many years of attempting to deal with the problem. Results of comparative qualitative studies in two information services Fortune 500 firms identify an approach that can effectively deal with the problem. This theory-based security program includes (1) use of a security risk planning model, (2) education/training in security awareness, and (3) Countermeasure Matrix analysis.

Factors Influencing Voluntary Corporate Disclosure by Kenyan Companies

Abstract: There has been considerable research in respect of voluntary disclosure by companies and factors that may explain such disclosure. However, most of the research has been centred in developed countries. This study extends the previous literature by examining voluntary disclosure in a developing country, namely Kenya. Over the last decade, the Kenyan Government has initiated several far-reaching reforms at the Nairobi Stock Exchange (NSE) in order to mobilise domestic savings and attract foreign capital investment. These measures include privatisation of state corporations through the stock exchange and allowing foreign investors to own shares in the listed companies. This study provides a longitudinal examination of voluntary disclosure practices in the annual reports of listed companies in Kenya from 1992 to 2001. The study investigates the extent to which corporate governance attributes, ownership structure and company characteristics influence voluntary disclosure practices. Our results suggest that the extent of voluntary disclosure is influenced by a firm's corporate governance attributes, ownership structure and company characteristics. The presence of an audit committee is a significant factor associated with the level of voluntary disclosure, and the proportion of non-executive directors on the board is found to be significantly negatively associated with the extent of voluntary disclosure. The study also finds that the levels of institutional and foreign ownership have a significantly positive impact on voluntary disclosure. Large companies and companies with high debt voluntarily disclose more information. In contrast, board leadership structure, liquidity, profitability and type of external audit firm do not have a significant influence on the level of voluntary disclosure by companies in Kenya.