Annotated Bibliography
Aboud, A., & Diab, A. (2018). The impact of social, environmental and corporate governance disclosures on firm value: Evidence from Egypt. Journal of Accounting in Emerging Economies, 8(4), 442-458.
The authors set themselves the goal of identifying the impact of policy transparency on firm value and increasing the credibility of financial activities as the criteria involved for analysis, social, governance, and environmental factors are used to reveal the appropriate correlations. According to the research results, transparency is viewed as a significant aspect that adds value to firms and is a tool to promote organizations in target markets. The study does not apply empirical data and utilizes the information from the national rankings as a background for data collection. Using the collected information from real participants in the financial market could reveal more objective outcomes.
Compared to the other articles involved, this study affects the financial market of a specific country, Egypt, which narrows the research outcomes. The peculiarity of this article is reviewing transparency and governance simultaneously as the aspects that define high reporting standards. In addition, the authors pay attention to social factors, which is also a feature of the study and helps determine the impact of unbiased and transparent reporting practices on the development of society.
The application of this article in future discussion may help confirm the relevance of a comprehensive assessment of the criteria affecting the transparency of financial policies. The researchers’ findings on the positive impact of transparency on firm value will complement the arguments about the need to stimulate appropriate reporting principles. Moreover, the discussion will include the importance of implementing corresponding practices at the local level to achieve global success in the future.
Brusca, I., Manes Rossi, F., & Aversano, N. (2018). Accountability and transparency to fight against corruption: An international comparative analysis. Journal of Comparative Policy Analysis: Research and Practice, 20(5), 486-504.
In their study, the authors seek to identify a positive correlation between increased transparency in financial transactions and a decrease in corruption rates. The focus on the international context allows for analyzing the presented issue from the perspective of global agencies’ activities. Through an empirical approach, the researchers analyzed data from 75 countries, thereby covering different financial institutions and approaches to the formation of commodity-money relations. Associated factors, such as the democracy index, are applied to perform a more accurate comparison. Based on the results, the authors emphasize the positive impact of transparency on reducing corruption and raising awareness of this problem in the global context. Social factors are not mentioned as criteria for analysis, and their inclusion in work could broaden the scope of research.
Of all the articles covered, this paper offers the broadest discussion of transparency as an anti-corruption tool. In addition, compared to other studies, this one includes a broad empirical base, which is its strength. For such large-scale research, this principle of data collection is an achievement in view of a wide range of data obtained from different countries to analyze and compare to obtain objective results.
By harnessing the views of international agencies on the issue under consideration, individual arguments will be used in future discussions to justify the global scale of corruption. Transparency and accountability criteria will be considered the key mechanisms for enhancing financial security. Data from individual countries will be cited as the arguments supporting the need to implement appropriate preventive policies and draw attention to the problem of corruption.
Cannizzaro, A. P., & Weiner, R. J. (2018). State ownership and transparency in foreign direct investment. Journal of International Business Studies, 49(2), 172-195.
In this article, the researchers examine the effects of foreign direct investment disclosure as a transparency factor from the perspective of influencing the sustainability and legitimacy of financial transactions. As additional arguments, the authors note the national institutions coordinating the forms of market ownership are important boards that determine the sustainability of transparent policies. The findings prove state ownership, as a form of control, reduces transparency rates, which is an incentive to restructure financial markets. The empirical data collected during the research complements the work done, and some specific countries are mentioned, although there is no clear division according to the indicators of each state.
Along with some other resources involved, this article uses empirical evidence to improve the reliability of the findings. In addition, the government’s role is assessed as high, which is also addressed in the area of studying transparency and its impact on financial reporting. However, social factors related to this topic are not mentioned, which is an oversight since, along with forms of government control, demographic criteria also deserve attention as incentives for determining the perception of accountability.
In future discussions, this study will be used as a resource that explains the relationship between ownership and transparency in the investment sector. The arguments about the impact of government regulation will be included to explain the importance of reasonable financial management. In addition, the idea of principles for managing investment flows will be seen from the perspective of an independent financial environment with high accountability and transparency as valuable criteria.
De Laat, P. B. (2018). Algorithmic decision-making based on machine learning from Big Data: Can transparency restore accountability? Philosophy & Technology, 31(4), 525-541.
The main research question of this article is to assess the importance of transparency as a factor influencing the improvement of reporting in the context of using Big Data analytics. As the authors note, for various reasons, for instance, the transition of datasets to the public status, transparency is lost, thereby complicating the implementation of complex accounting procedures. In such conditions, Big Data and other algorithmic approaches to organizing information lose productivity, which, according to the researchers, is a consequence of insufficient transparency of operations. As a suggestion, they offer to increase transparency through innovative strategies to improve accounting through machine learning systems leveraging Big Data. The study is of a recommendatory nature, and no real financial cases are analyzed.
Along with one more source, this work touches on the topic of Big Data and the importance of evaluating digital information assessment systems. However, the article does not include empirical or test data, which makes the researchers’ arguments less credible. At the same time, detailed justifications are given in relation to the possibility of optimizing financial reporting through transparency, which allows asserting this work is consistent with the topic analyzed.
In future discussions, this resource will be a valuable addition to the case for increasing transparency as an activity that can improve accountability. Moreover, Big Data algorithms will be mentioned to emphasize the importance of digital forms of organizing information. The idea of introducing machine learning will also be included to complement the discussion about moving to advanced forms of investment control and accountability.
Vedder, A., & Naudts, L. (2017). Accountability for the use of algorithms in a Big Data environment. International Review of Law, Computers & Technology, 31(2), 206-224.
In this article, the authors raise the following problem: in modern Big Data systems, accounting cannot be fully implemented due to the social influences of information systems and the lack of sufficient transparency. The researchers explain this by the complexity of Big Data systems and the group nature of their work, while for an accurate assessment of information, less extensive data is needed. As a result, they argue in modern realities; accountability mechanisms need to be transformed to integrate them into advanced digital systems and, at the same time, not violate existing norms regarding social conditions of service, for instance, privacy. Markets and financial investments are not assessed in this plane, but the topic of transparency is discussed in detail, which allows speaking of the need to consider appropriate initiatives for optimization in this direction.
Like the previous resource, this article touches on the area of Big Data, which allows discussion accountability from the perspective of a modern, high-tech approach to organizing information. Nevertheless, there is no discussion of how improvements might affect financial markets. Public interests are considered in the study, which makes it possible to evaluate the possible prospects for the development of this industry from the standpoint of influencing various social services.
The arguments about the value of increased transparency for enhancing accountability in the digital environment will be included in future discussion. The assertions about the complex nature of Big Data algorithms will also be mentioned to create a comprehensive picture of this field. The mechanisms for influencing decisions made to optimize transparency will be considered in the context of opportunities for innovative improvement rather than from the perspective of management strategies.
Discussion
Accounting is associated with strict accountability and obligations, requires using adequate approaches to ensure stable control over finances and tools for analyzing monetary policies. However, due to various circumstances, for instance, the transition of private data to public or the lack of an adequate audit framework, accounting may be accompanied by some problems. One of these gaps is weak transparency since this criterion largely determines the reliability of all financial transactions and directly correlates with reporting validity. Moreover, transparency plays a significant role not only in financial markets but also in society because the interests of investors often depend on how adequate audit and reporting practices are. Therefore, the assessment of this phenomenon from the perspective of the impact on accounting and society is relevant in the analysis of the factors affecting this factor and the challenges it may cause. This discussion proposes to evaluate various researchers’ views on the aspect of transparency in the context of financial security and work in modern environments involving Big Data.
One of the main advantages of transparency in accounting is the ability to ensure stakeholders’ trust. Aboud and Diab (2018) argue this increases firm value, which is a valuable factor in enhancing an organization’s status. Moreover, the authors emphasize the relevance of improving transparency at the local level since regional audit bodies and other financial agencies often promote individual approaches to reporting, which can be accompanied by bias (Aboud & Diab, 2018). At the same time, Cannizzaro and Weiner (2018) note the role of governments in regulating the problem of weak transparency, although an independent financial environment is common in different markets. Based on the global problem of corruption, concerned agencies should promote this principle of ensuring the reliability of reporting because data from large economies demonstrate ineffective work on improving transparency (Brusca et al., 2018). Various researchers conclude that a comprehensive assessment of the environment in which investment transactions occur is a prerequisite for creating a transparent reporting system to guarantee the safety and reliability of financial flows (Aboud & Diab, 2018; Cannizzaro & Weiner, 2018). Another significant topic discussed is ensuring transparency in the context of working with Big Data. According to Groșanu et al. (2020), when operating with these systems, accountants often face challenges caused by the lack of a theoretical basis for the principles of operation. Vedder and Naudts (2017) confirm this, arguing Big Data systems are complex in nature, and to ensure sufficient transparency, special control mechanisms should be promoted while taking into account many conventions. For instance, as De Laat (2018) remarks, in order for the entire work process to be sustainable, introducing machine learning is an essential condition. Having no experience with Big Data, accountants often make mistakes unintentionally, which is a motive to abandon this form of activity and follow traditional practices (Groșanu et al., 2020). Nevertheless, as Vedder and Naudts (2017) state, with the right approach, such innovative systems can optimize the decision-making process, but all interventions should be based on the assessment of Big Data not from a managerial but an operational perspective to eliminate bias. By following the correct algorithms, transparency in accounting can be optimized, which is a benefit not only for financial markets but also for society.
Given the collected findings, the aforementioned authors suggest different research directions. Groșanu et al. (2020) emphasize the need to analyze the implementation of Big Data mechanisms in accounting by searching for new standards. De Laat (2018) confirms the relevance of developing an advanced form of investment control, and the main proposals imply assessing transparency not only in accounting but also in other areas in which finance is involved. Aboud and Diab (2018) discuss the need for a detailed evaluation of transparency gains across countries but not just Egypt. Brusca et al. (2018) complement these views and note the importance of finding alternative anti-corruption practices in the context of analyzing the role of transparency as one of the key tools. By taking an example of an individual economy, Cannizzaro and Weiner (2018) propose to consider the distinctive roles of government and the private sector from the perspective of advantages and disadvantages in regulating financial flows. Finally, Vedder and Naudts (2017) suggest examining Big Data algorithms in detail to find the optimal strategy for combining innovation and accountability. These research perspectives are essential for a deeper study of the topic raised.
References
Aboud, A., & Diab, A. (2018). The impact of social, environmental and corporate governance disclosures on firm value: Evidence from Egypt.Journal of Accounting in Emerging Economies, 8(4), 442-458.
Brusca, I., Manes Rossi, F., & Aversano, N. (2018). Accountability and transparency to fight against corruption: An international comparative analysis. Journal of Comparative Policy Analysis: Research and Practice, 20(5), 486-504.
Cannizzaro, A. P., & Weiner, R. J. (2018). State ownership and transparency in foreign direct investment.Journal of International Business Studies, 49(2), 172-195.
De Laat, P. B. (2018). Algorithmic decision-making based on machine learning from Big Data: Can transparency restore accountability?Philosophy & Technology, 31(4), 525-541.
Groșanu, A., Fülöp, M. T., Cordoș, G. S., & Raita, G. (2020). Challenges and trends for the incorporation of Big Data in the accounting profession: From the traditional approach to the future professional accountant. CECCAR Business Review, 1(12), 64-72.
Vedder, A., & Naudts, L. (2017). Accountability for the use of algorithms in a Big Data environment.International Review of Law, Computers & Technology, 31(2), 206-224.