Anti-corruption Disclosures Reporting Practices for Achieving Good Governance: Evidence from Bangladesh

Abstract

Purpose

Anti-corruption disclosure (ACD) is increasingly important for evaluating how firms demonstrate openness, integrity, and responsibility to stakeholders and society in their efforts to combat this widespread issue. Accordingly, the study's objective is to examine the level and extent of ACD reporting practices in the corporate annual reports of companies operating in the banking, cement, and ceramic industries listed on the Dhaka Stock Exchange (DSE), Bangladesh. Additionally, this study aims to determine the impact of the companies' ACD reporting practices on their financial performance.

Materials and Methods

The authors purposefully selected thirty-six banks from the banking industry, seven companies from the cement industry, and five from the ceramic industry to complete this study. The contents and thematic analysis have been used in this study. The authors developed the "Anti-corruption Disclosures Index as per Global Reporting Initiatives (ACDIGRI)." It is divided into three main sections: "Operations Assessed for Corruption Risks," "Communications and Training about Anti-Corruption Policies and Procedures," and "Confirmed Corruption Incidents and Actions Taken." Together, these three parts make up eleven items. A regression model has been used to measure the association between the volume of anti-corruption disclosure reporting practices and the companies' financial performance.

Findings

The results of the study revealed that the firms in Bangladesh do not comply with international norms for ACD reporting practices. However, there is no specific guideline for doing so. As a result, there are noticeable differences in the caliber and volume of reports among various organizations. Additionally, research revealed a positive correlation between the volume and extent of corporate ACD practices and firms' financial performance, albeit not statistically significant. Although corporate ACD reporting processes have greatly improved internationally, the primary factor contributing to Bangladesh's deficiency in these practices is the lack of a legislative framework governing them. Consequently, organizations are making preparations in accordance with their level of willingness.

Implication

The study's findings proposed an ACD reporting framework for concerned authorities and policymakers to enhance good governance, accountability, and transparency, as these are regarded as fundamental issues for achieving the Sustainable Development Goals (SDGs) in a timely manner.

Keywords: Anti-corruption disclosure, good governance, transparency, firm performance

DOI: 10.7176/RJFA/16-7-02

Publication date:August 31^st 2025