Accounting information transparency and business performance: A case of G7 construction companies
A high level of company bankruptcy in certain countries and a low level of profitability actualizes the need to find additional mechanisms for increasing the efficiency of their activities. One of such mechanisms is the growth of information transparency. The study deals with examining the effects o...
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| Format: | Article |
| Language: | English |
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LLC "CPC "Business Perspectives"
2022-12-01
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| Series: | Problems and Perspectives in Management |
| Subjects: | |
| Online Access: | https://www.businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/17527/PPM_2022_04_Abbasova.pdf |
| _version_ | 1797979291224375296 |
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| author | Sevinj Abbasova Mehriban Aliyeva Leyla Huseynova |
| author_facet | Sevinj Abbasova Mehriban Aliyeva Leyla Huseynova |
| author_sort | Sevinj Abbasova |
| collection | DOAJ |
| description | A high level of company bankruptcy in certain countries and a low level of profitability actualizes the need to find additional mechanisms for increasing the efficiency of their activities. One of such mechanisms is the growth of information transparency. The study deals with examining the effects of accounting information transparency on business performance on the example of construction companies in G7 countries. The transparency index was used as a parameter characterizing the level of accounting information transparency. The level of business performance was analyzed using the following indicators: value added of the construction industry, investment in the construction industry, number of construction firms, profitability of the construction industry, annual all-work construction output index, and total employees in construction firms. The dependence between the indicators was analyzed using the multiple regression analysis, Dickey-Fuller, Philips Perron, and Johansen tests. According to the results, the most vital link was between the level of accounting information transparency and the volume of investments (increased information transparency by 1 point leads to an increase in the volume of investments from 1.7% to 4.6%). At the same time, the level of accounting information transparency practically does not affect the number of employees (change by 0.1-0.2%) and added value (change by 0.1-0.3%). It was concluded that the policy of accounting information transparency should be an essential element of company strategy aimed to increase the level of its investment attractiveness and confidence of investors and consumers in its activities. |
| first_indexed | 2024-04-11T05:37:48Z |
| format | Article |
| id | doaj.art-27c056bbc49a4e6bba9495cd6a0ab91a |
| institution | Directory Open Access Journal |
| issn | 1727-7051 1810-5467 |
| language | English |
| last_indexed | 2024-04-11T05:37:48Z |
| publishDate | 2022-12-01 |
| publisher | LLC "CPC "Business Perspectives" |
| record_format | Article |
| series | Problems and Perspectives in Management |
| spelling | doaj.art-27c056bbc49a4e6bba9495cd6a0ab91a2022-12-22T10:27:53ZengLLC "CPC "Business Perspectives"Problems and Perspectives in Management1727-70511810-54672022-12-0120451853110.21511/ppm.20(4).2022.3917527Accounting information transparency and business performance: A case of G7 construction companiesSevinj Abbasova0https://orcid.org/0000-0003-2447-3411Mehriban Aliyeva1https://orcid.org/0000-0003-4628-4873Leyla Huseynova2Ph.D. in Economics, Associate Professor, Head of Department of Applied Economics, Azerbaijan State University of Economics (UNEC)Ph.D. in Economics, Associate Professor, Department of Applied Economics, Azerbaijan State University of Economics (UNEC)Ph.D. in Economics, Lecturer, Department of Applied Economics, Azerbaijan State University of Economics (UNEC)A high level of company bankruptcy in certain countries and a low level of profitability actualizes the need to find additional mechanisms for increasing the efficiency of their activities. One of such mechanisms is the growth of information transparency. The study deals with examining the effects of accounting information transparency on business performance on the example of construction companies in G7 countries. The transparency index was used as a parameter characterizing the level of accounting information transparency. The level of business performance was analyzed using the following indicators: value added of the construction industry, investment in the construction industry, number of construction firms, profitability of the construction industry, annual all-work construction output index, and total employees in construction firms. The dependence between the indicators was analyzed using the multiple regression analysis, Dickey-Fuller, Philips Perron, and Johansen tests. According to the results, the most vital link was between the level of accounting information transparency and the volume of investments (increased information transparency by 1 point leads to an increase in the volume of investments from 1.7% to 4.6%). At the same time, the level of accounting information transparency practically does not affect the number of employees (change by 0.1-0.2%) and added value (change by 0.1-0.3%). It was concluded that the policy of accounting information transparency should be an essential element of company strategy aimed to increase the level of its investment attractiveness and confidence of investors and consumers in its activities.https://www.businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/17527/PPM_2022_04_Abbasova.pdfbusiness performancecompetitive advantageseconomic goalsinformation transparencyrisk |
| spellingShingle | Sevinj Abbasova Mehriban Aliyeva Leyla Huseynova Accounting information transparency and business performance: A case of G7 construction companies Problems and Perspectives in Management business performance competitive advantages economic goals information transparency risk |
| title | Accounting information transparency and business performance: A case of G7 construction companies |
| title_full | Accounting information transparency and business performance: A case of G7 construction companies |
| title_fullStr | Accounting information transparency and business performance: A case of G7 construction companies |
| title_full_unstemmed | Accounting information transparency and business performance: A case of G7 construction companies |
| title_short | Accounting information transparency and business performance: A case of G7 construction companies |
| title_sort | accounting information transparency and business performance a case of g7 construction companies |
| topic | business performance competitive advantages economic goals information transparency risk |
| url | https://www.businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/17527/PPM_2022_04_Abbasova.pdf |
| work_keys_str_mv | AT sevinjabbasova accountinginformationtransparencyandbusinessperformanceacaseofg7constructioncompanies AT mehribanaliyeva accountinginformationtransparencyandbusinessperformanceacaseofg7constructioncompanies AT leylahuseynova accountinginformationtransparencyandbusinessperformanceacaseofg7constructioncompanies |