1,720,999 research outputs found
Isomorfismo ed impression management nei grafici sulla performance ambientale, sociale e di governance nei bilanci
No full textThe aim of the paper is to investigate the main determinants of graphical reporting on environmental, social and governance (ESG) performance and to understand whether impression management and institutional perspectives can help to explain the use of these graphs. Previous studies on graphical reporting, both considering consolidated annual reports and stand-alone sustainability reports, have mainly explained the use of graphs through impression management theories, by showing a selective and distorted use of graphs aimed to portray a favourable view of the firm’s performance. Few studies, on the other hand, have supposed that institutional theory might help to explain the use of graphs. To our knowledge, this is the first paper which focuses on graphs related with the firm’s ESG performance, voluntarily added within consolidated annual reports. Eighty European consolidated annual reports have been investigated through a regression analysis, controlling for size, industry and volatility. It is found, in line with impression management, that firms tend to use more graphs on their ESG performance when their overall financial performance is higher, while the specific environmental, social and governance performance does not seem to drive graphical reporting. These findings suggest that: consolidated annual reports give a priority to economic-financial results and firms are driven, in the choice of non-financial indicators’ graphs, by their overall financial performance, rather than by their specific non-financial performance. In line with institutional theory, it is found that firms tend to replicate the choices made by their market leaders, in the use and content of voluntary graphs. This isomorphic behaviour is stronger when firms face a higher economic uncertainty (estimated by “low” financial performance), in line with mimetic isomorphism. The paper contributes to the voluntary disclosure literature by studying graphical reporting with the lenses of impression management and institutional theories. Both perspectives seem helpful to explain discretional graphical reporting strategies and can be jointly analysed. The paper also provides evidence on the different usage of nonfinancial information in consolidated annual reports rather than in stand-alone sustainability reports. It is suggested to annual reports’ readers to be aware that managers use graphs, even those on the firm’s ESG results, opportunistically and replicating the leaders’ previous reporting choices
Graphical reporting in Italian Annual Reports during the financial crisis: impression management or incremental information?
No full textThis paper investigates whether, before and during the global financial crisis, Italian firms have used financial key performance indicators graphs in the annual reports as impression management tools, to portray a more favourable picture of the firm’s performance than is warranted. This study shows that, during the financial crisis, firms have increased the number of graphs and decreased favourable distortions, although graphs continue to be designed inaccurately. The findings could reflect an increased public scrutiny on the firm’s performance, during the financial crisis. As a theoretical implication, this paper contributes to the existent financial reporting literature by showing that graphs are not necessarily used in line with an agency theory-based impression management, which is the dominant perspective to explain the graphs’ usage in the annual reports during periods of performance upturn. Moreover, it shows that the institutional context can affect voluntary disclosure practices at a firm-level. As a practical implication, this study suggests to annual reports’ readers not to necessarily consider managers as self-serving preparers in their graphical reporting strategies. The study also suggests accounting associations, audit firms and other regulatory bodies to create a set of guidelines for a correct graph’s use and design
Analyst following, country's financial development, and the selective use of graphical information in corporate annual reports
Full text linkThis article investigates whether and how the demand for information at country and firm levels affects the selective use of key performance indicators graphs in corporate annual reports. Our study finds that the country-level and firm-level demands for
information provide an incentive, rather than a curb, for a selective display of key performance indicators, which is an important concern in corporate communication and reporting. The external pressure from the demand for information seems to encourage, rather than discourage, impression management. We suggest that annual report readers should use graphical information with caution as companies are likely to provide a self-serving, nonneutral, account of their performance in those contexts where the pressure to perform is higher
Oppressed by consumerism: The emancipatory role of household accounting
Full text linkThis paper investigates the role of household accounting in mitigating the oppressive force that is consumerism. Accounting helps to educate a community of families, allowing them to achieve a more restrained, just, and happier life. In this paper, the case study approach was used, and an in-depth analysis of an Italian community of families called the “Reports of Justice” was conducted. These families use accounting spreadsheets to view, analyze, and reallocate their expenditures toward more sustainable products. In this way, these families could observe an emancipatory change in progress and reflect on it. Additionally, by sharing reports and engaging in open discussions on accounting within local groups and other meetings, the whole community learns to achieve a more sober and just lifestyle, as opposed to a consumerist one. The paper shows how a community of families can learn to mitigate consumerism’s negative impacts through a process of problematization and praxis. The results are explained by relying on a Freirean-based theoretical approach. Accounting acts as a dialogic and mobilizing codification that codifies familial changes and helps achieve a transformational praxis. The paper is thus one of the first real-life examples of accounting’s contributions to responsible, sustainable consumption outside the corporate arena in a neglected micro-level context
Management accounting systems in venture capital-backed start-up companies
No full textManagement Accounting Systems (MAS) can help start-up companies to manage resource allocation and satisfy investors’ information needs. This study helps to investigate the main features of MAS adopted by Italian venture capital-backed startup companies. Also, the study aims to analyse how venture capitalists monitor their investment through management accounting. Thirty semi-structured interviews were carried out to gather information from a corporate and an investor perspective. Our results show that both start-up companies and investors consider MAS as useful to make conscious and target-oriented decisions. MAS are used by investors to monitor the investee’s performance and contribute in aligning goals’ time horizon. In addition, MAS help investors to develop a cooperative relationship with start-up companies and to provide business advices. This study contributes to the agency-theory debate by showing that MAS help not only to reduce information asymmetries but also to foster a dialogue and to benefit from investors’ human capital
The evolution of CSR contracting in Italian non-financial listed companies
No full textMost of the prior studies on executive remuneration lack nuanced qualitative analyses of the design of sustainability-related incentive plans. In particular, little is known about several design elements, such as the types and weights of key performance indicators (KPIs), the KPIs targets, and their range of values and achievement levels. Through in-depth documentary analysis, this chapter aims to fill this gap by exploring, through a detailed and comparative analysis, the design of incentive plans addressing environmental, social-, and governance-related goals. Specifically, this chapter focuses on the sustainability-related incentive components for CEOs of Italian non-financial companies listed on the FTSE-MIB index. The main findings show a general enhancement in the design of sustainability-related incentive plans, considering their use, scope, and specificity regarding targets and their attainment. However, weaknesses persist, particularly concerning the motivation behind adopting this form of incentive plan and the related KPIs. In addition, this chapter highlights a biased focus on a small subset of stakeholders, the delayed presentation of targets, and the low difficulty level in achieving these targets. For these reasons, this study stresses the need for more robust, transparent, and challenging sustainability-oriented incentive structures to contribute to corporate social, environmental, and governance-related goals effectively
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