The determinants of corporate anti-corruption disclosures: evidence from construction companies in the Asia-Pacific
Abstract
Purpose
This study aims to investigate the determinants of anti-corruption disclosures by construction firms in Asia-Pacific countries.
Design/methodology/approach
The sample comprises construction companies from seven Asia-Pacific countries from 2015 to 2019. The authors hand-collected data on anti-corruption disclosures by using content analysis.
Findings
This study provides empirical evidence that government ownership, country-level accounting competence and high-quality auditors increase companies’ anti-corruption disclosures. Meanwhile, this study finds that uncertainty avoidance does not affect companies’ anti-corruption disclosures.
Practical implications
This study has a number of implications. First, government and professional accountant organizations need to improve accountants’ knowledge and competence through education, training and continuous professional development. Second, public accounting firms need to ensure the quality of their auditors, particularly in the technical competence in financial and nonfinancial reporting. Finally, universities must improve and update their curriculum regarding nonfinancial reporting issues.
Originality/value
This study is among the first to examine anti-corruption disclosure practices in the most corrupted settings, i.e. the construction industry in Asia-Pacific countries. It uses the isomorphism perspective to explain the influence of government ownership, country-level accounting competence and high-quality auditors on anti-corruption disclosure transparency. The number of prior studies investigating this association is very limited. Moreover, disclosures of anti-corruption information are complex and sensitive; thus, coercive, normative and mimetic pressures are required to achieve higher transparency and sustainability.
Keywords
Acknowledgements
The authors thank gratefully the Indonesian Ministry of Education and Culture, Research and Technology and the Indonesian Ministry of Finance for financially funding this research. Authors thank Editor-in-Chief (Prof. Gabriel Eweje) and Associate Editor (Dr Mia Pham) for all guidance and feedback in developing this manuscript to the current form. They also extend their gratitude to the anonymous reviewers for helpful comments of the earlier version of the manuscript.
Citation
Utami, E.R. and Barokah, Z. (2024), "The determinants of corporate anti-corruption disclosures: evidence from construction companies in the Asia-Pacific", Corporate Governance, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/CG-04-2023-0152
Publisher
:Emerald Publishing Limited
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