The disclosure structure and its effect on performance - Essay Example

Dissertation Analysis Task: Dissertation Analysis Article: Clodia, V., & Francesco, P. . Making the most of corporate social responsibility reporting: disclosure structure and its impacts on performance. Corporate Governance 11(4), 459-474. Retrieved from http://search.proquest.com/business/docview/883237350/fulltext?accountid=45049 Description of the methodology The research considered the necessity of developing knowledge that could improve procedures for reporting levels of Corporate Social responsibility (CSR). Consequently, the research investigated the disclosure structure and its effect on performance. The main objective of the study was to examine 3-year disclosure statistics of Fortune 100 global organizations to propose and analyze a model that associates the structure of CSR disclosure to corporate social performance (Clodia & Francesco, 2011). The research combined content examination of CSR reports, and corporate performance data of various companies covered in the Accountability Rating statistics of the period 2004 to 2007 to facilitate the study. The study conducted a longitudinal regression on a sample size of 114 companies. The study utilized a multifaceted approach to analyze influential variables capable of informing the analysis. Particularly, the research related the level, and structure of environmental and societal disclosure to CSP (Clodia & Francesco, 2011). Evaluation of the methodology The research utilized a design capable of addressing study objectives accordingly. The research sample was developed by following informed procedures leading to the establishment of an inclusive sample (Scruggs & Mastropieri, 2006). The research identified influential variables for measuring the effect of practice on the firm’s performance to examine the effect of the disclosure level and the structure on the company’s CSP. According to Panneerselvam (2004), an ideal study must define all essential variables that when examined can help one develop an informed conclusion. The researcher should acknowledge different types of variables to propose ideal method for assessing each (Scruggs & Mastropieri, 2006). Researchers conducting the analysis considered the variables while setting a sample for their study. This is evident in the study’s approach of focusing on a sample of organization with essential statistics that allowed researchers assess all necessary variables consistently. The study sourced data from a diverse population of global companies included in reliable business statistics to develop a longitudinal dataset for the study (Clodia & Francesco, 2011). The research principally focused on three hypotheses. The first hypothesis theorized that a larger depth of the disclosure should lead to an increased corporate social performance. The second hypothesis speculated that an increase in the breadth of firm’s disclosure ought to lead to an increase in its performance while the third hypothesis observed that a decrease in the homogenous of the spread of the nonfinancial disclosure should lead to a lower performance (Clodia & Francesco, 2011). The second and the third hypotheses were derived out of hypothesis one to account for its weakness. This excellent approach promoted study’s reliability by working on weaknesses in the methodology. The data analysis procedures included the use reliable statistical functions to quantify study variables. Particularly, the study developed three statistical functions, the first one for analyzing disclosure depth, the second one for examining disclosure breadth and the third one for analyzing disclosure concentration, by making each quantity the subject of the formula. Statistical results primarily supported hypotheses with most results indicating a positive correlation of between levels of disclosure and the firm’s corporate social performance. Furthermore, the collinearity examinations highlighted that the statistical analysis was not limited by multicollinearity problem. The authors were keen while setting P-value for their analysis as evident their approach of conducting the analysis against varying associated P-values. Particularly, they conducted analysis and provided results under situations where the P Read More