A multilevel trust management framework for service oriented environment

In service-oriented computing applications, trust management systems are emerging as a promising technology to improve the e-commerce consumers and provider's relationship. Both consumers and providers need to evaluate the trust levels of potential partners before engaging in interactions. The accuracy of trust evaluation greatly affects the success rate of the interaction. This paper addresses the threats and challenges that can compromise the reliability of the current trust management system. This paper studies and examines the importance of the trust factors of the trust management framework, specifically in dealing with malicious feedback ratings from e-commerce users. To improve the reliability of the trust management systems, an approach that addresses feedback-related vulnerabilities is paramount. A multilevel trust management system computes trust by combining different types of information. Using this combination, we introduce a multilevel framework for a new interactive trust management to improve the correctness in estimate of trust information.

Lemons on the web: a signalling approach to the problem of trust in Internet commerce

Asymmetric information is at the heart of situations involving trust. In the case of B2CInternet commerce, the information asymmetry typically relates to the difficulty that consumershave of distinguishing between ‘‘trustworthy’’ and ‘‘untrustworthy’’ Web merchants. Theimpasse can be resolved by the use of signals by trustworthy Web merchants to differentiatethemselves from untrustworthy ones. Using an experimental design where subjects are exposedto a series of purchase choices, we investigate three possible signals, an unconditional moneybackguarantee, branding, and privacy statement, and test their efficacy. Our empirical resultsconfirm the predictions suggested by signalling theory.

Benefits, impediments and critical success factors in B2C E-business adoption

This paper reports the results of a study carried out to assess the benefits, impediments and major critical success factors in adopting business to consumer e-business solutions. A case study method of investigation was used, and the experiences of six online companies and two bricks and mortar companies were documented. The major impediments identified are: leadership issues, operational issues, technology, and ineffective solution design. The critical success factors in the adoption of e-business are identified as: combining e-business knowledge, value proposition and delivery measurement, customer satisfaction and retention, monitoring internal processes and competitor activity, and finally building trust. Findings suggest that above all, adoption of e-business should be appropriate, relevant, value adding, and operationally as well as strategically viable for an organization instead of being a result of apprehensive compliance.

Trust and technology in modern inter-organisational relationships: a study in the petrochemical industry

 This research provided fresh insights into the role of trust and technology in modern inter-organisational relationships (IORs). The study highlighted the importance and contribution of various aspects of IORs in the petrochemical industry; however, it emphasised the role of trust and technology as pivotal to business success. The study was undertaken in Iran, where the petrochemical industry faces a great many sociopolitical and economic challenges, where the situation is volatile, and where the lack of trust and shortage of suitable technology to support global trade, accentuate the intricate web of dependencies between those aspects influencing the development and maintenance of business-to-business (B2B) relationships.

The current status of environmental reporting by Indian companies

Purpose: The purpose of this paper is to explore the state of environmental reporting by Indian companies on their web sites and also in their annual reports.
Design/methodology/approach: The web sites of the companies in the sample were visited to examine the accessibility and extent of environmental information disclosure on their web sites. The annual reports for 2003‐2004, as available on the companies' web sites were selected to investigate the extent of environmental information disclosure in these annual reports.
Findings: The paper finds that, although there are no regulations enforcing the disclosure of environmental information, most of the Indian companies have disclosed environmental information. These companies provided more environmental information on their web sites compared to the information provided in their annual reports.
Originality/value: This study contributes to the existing body of environmental reporting literature by focusing on the status of environmental reporting by companies of an emerging economy and also contributes to the existing body of environmental reporting literature by focusing on the accessibility of environmental information on web sites of respective companies.

An analysis of qualitative characteristics of management commentary reporting by New Zealand companies

The narrative section of annual reports has considerable value to its user groups, such as financial analysts and investors (Barlett & Chandler
1997; International Accounting Standards Board (IASB) 2006; Tiexiera 2004). This narrative section including chairpersons’/presidents’ statement contains twice the quantity of information than the financial statements section (Smith & Taffler 2000). However, the abundance of information does not necessarily enhance the quality of such information (IASB 2006). This issue of qualitative characteristics has been long foregone by researchers. This issue has attracted the attention of IASB (2006). Following the dearth in research in regard to qualitative characteristics of reporting this paper explores whether investors’ required qualitative characteristics as outlined by the IASB (2006) have been satisfied in the management commentary section of New Zealand companies’ annual reports. Our result suggests that the principal stakeholders’, that is, investors’ qualitative characteristics requirements have been partially met in this section of annual reports. The qualitative characteristic of ‘relevance’ and ‘supportability’ have been satisfied in more annual reports compared to that of ‘balance’ and ‘comparability’.

The current status of greenhouse gas reporting by Chinese companies: a test of legitimacy theory

Purpose – The purpose of this paper is to investigate the factors driving greenhouse gas reporting by Chinese companies.
Design/methodology/approach – Content analysis of annual reports and corporate social responsibility (CSR) reports for the year 2010 of the top 100 A-share companies listed on Shanghai Stock Exchange was conducted to investigate the extent of greenhouse gas reporting. Multiple regression analysis was performed to determine the factors driving these companies’ greenhouse gas reporting.
Findings – It was found that most Chinese companies reported neutral and good news. The results also indicate larger companies operating in an industry which has higher level of carbon dioxide emissions tend to have higher levels of greenhouse gas disclosures, consistent with the expectation of legitimacy theory. However, profitability and overseas listing were not significantly related to greenhouse gas reporting. This is consistent with the findings of previous literature. Finally, contrary to expectations, state-owned companies report less greenhouse gas information than private companies.
Originality/value – The paper contributes towards theory development by testing legitimacy theory in the context of greenhouse gas reporting by Chinese companies and contributes to existing literature on greenhouse gas reporting by focussing on the large emerging economy of China. The practical contribution of the paper rests in the area of accounting practice. The results outline the dearth in greenhouse gas reporting by Chinese companies, suggesting there needs to be future development of accounting standards in this area.

Does Internet reporting improve the accessibility of financial reporting in a global world? A comparative study of New Zealand and Indian companies

 The accessibility of business reporting, including financial reports on company websites is not necessarily increased by providing more information on websites. The quality of Internet-based information is affected by both the accessibility and quantity of information provided. However, the accessibility of the information is an under researched area. This paper contributes to the existing body of knowledge on webbased business reporting, by considering the dimension of accessibility in terms of website appearance and visual design from four different perspectives. The aim is to consider the differences that occur in website organisation as a way of considering the accessibility of information provided on company websites. The paper considers the differences in the accessibility of website information between New Zealand and Indian companies as a means of demonstrating the variation that can occur across countries as well as within the same reporting structure. We conclude that Internet financial reporting does provide the illusion of comparability but without a more sustained focus on the harmonisation of terminology and attributes included in Internet reporting, the potential for comparison is reduced.

Multiple states of financially distressed companies: Tests using a competing-risks model

This study examines the determinants of multiple states of financial distress by applying a competing-risks model. It investigates the effect of financial ratios, market-based variables and company-specific variables, including company age, size and squared size on three different states of corporate financial distress: active companies; distressed external administration companies; and distressed takeover, merger or acquisition companies. A sample of 1,081 publicly listed Australian non-financial companies over the period 1989 to 2005 using a competing-risks model is used to determine the possible differences in the factors of entering various states of financial distress. It is found that specifically, distressed external administration companies have a higher leverage, lower past excess returns and a larger size; while distressed takeover, merger or acquisition companies have a lower leverage, a higher capital utilisation efficiency and a larger size compared to active companies. Comparing the results from both the single-risk model and the competing-risks model reveals the need to distinguish between financial distress states.

Default probability for the Jordanian companies: A test of cash flow theory

Abstract
This paper aims to investigate the effect of cash flow and free cash flow on corporate failure in the emerging market in particular Jordan using two samples; matched sample and a cross sectional time-series (panel data) sample representative of 167 Jordanian companies in 1989-2003. LOGIT models are used to outline the relationship between firms’ financial health and the probability of default. Our results show that there is firm’s free cash flow increases corporate failure. The result also shows that the firm’s cash flow decreases corporate failure. Firms’ capital structures are fund a mental in predicting default. Capital structure is seen as the main factor affecting the probability of default as it affects a firm’s ability to access external sources of funds. Jordanian firms depend on short-term debt for both short and long term financing.