1,721,048 research outputs found
Business Models and Corporate Reporting. Defining the Platform to Illustrate Value Creation
No full textThis book discusses the role of business models in corporate reporting. It illustrates the evolution of non-financial reporting, the importance of business model reporting, and the main conceptualisations of business models. It also offers a methodological contribution to the assessment of business model reporting. Finally, it discusses the main implication of business model reporting for different categories of subjects and some challenges related to this kind of disclosure.Readers will understand the role of business models in the non-financial reporting landscape. They will also gain an understanding of how business models can help users of the annual report contextualise other non-financial items disclosed. However, effective business model reporting implies paying attention to certain features that define its quality. This theme is discussed in the empirical part of the book and in the section devoted to implications for preparers, users, and regulators. As large companies in the EU and the UK have to disclose the business model in the annual report, this book will be of interest to preparers and users of financial statements, regulators involved in the ongoing non-financial regulatory process, and professional bodies. It will also be of interest to academics interested in the investigation of non-financial reporting
La contabilizzazione dell'avviamento tra impairment e ammortamento. Riflessioni ed evidenze empiriche
No full textIl tema dell'iscrizione iniziale dell'avviamento in bilancio e del suo successivo trattamento contabile è da sempre un argomento di particolare interesse per l'accademia e per i practitioner e, anche di recente, è stato oggetto di particolare attenzione da parte degli standard internazionali (IASB e FASB). Questo lavoro affronta la problematica partendo anzitutto da una attenta analisi della letteratura sul tema, indagando quindi il fenomeno nel contesto europeo, dapprima descrivendo il peso dell'avviamento dell'avviamento in Europa e la sua dinamica su un orizzonte temporale pluriennale (2005-2021), quindi cogliendo le significative differenze tra trattamento basato sul solo impairment e l'ipotetico trattamento basato sul solo ammortamento. In tal modo sarà possibile supportare empiricamente alcuni ragionamenti sull'opzione da ritenersi preferibile sulla base delle alternative finalità
The effects of business model regulation on the value relevance of traditional performance measures. Some evidence from UK companies
No full textThe first case in the world of a mandatory requirement to disclose business model (BM) in the
annual report is represented by Companies Act 2013 issued in the UK.
The BM offers a simplified representation of a company’s key resources and of how these are
combined to create value. For this reason, a systematic communication of BM should affect
the way a company book value and its capability to generate earnings are perceived.
The purpose of this work is to investigate the impact of mandatory BM disclosure on the
value relevance of traditional financial measures.
Focusing on a sample of UK listed companies over a six-year period, Ohlson model is utilized
to assess the value relevance of book value and net income and their interactions with a
dummy variable that accounts for the introduction of mandatory disclosure of BM.
In line with previous studies on non-financial disclosure regulations, results show that the
introduction of the mandatory requirement to disclose BM has a negative moderating effect
on book value of equity and a positive moderating effect on net income.
As this is the first study to investigate the effects of a mandatory BM disclosure regime, it
could be of interest for both academics and standard-setters
R&D disclosure in the annual report: Empirical evidence from automotive and pharmaceutical companies
No full textDynamic accountability and the role of risk reporting during a global pandemic
Full text linkPurpose – This article lays out some conceptual considerations of how dynamic accountability and risk reporting practices could be tailored during and after a global pandemic.Design/methodology/approach – This conceptual paper seeks to foster the debate on the crucial role of risk reporting considering the impact and uncertainty caused by the coronavirus disease 2019 (COVID-19) pandemic and stakeholder information needs in this context. The authors draw upon neo-Durkheimian institutional and legitimacy theories and elements of the accounting and risk management literature to discuss the challenges that the pandemic poses to risk recognition and assessment and the subsequent disclosure decision of risk information.Findings – Risk reporting has its roots in risk recognition and assessment. To live up to their accountability in these times of uncertainty, organisations need to address their stakeholders’ new and changing information needs. Ad hoc disclosures and linking risk management and reporting to their business models (BM) would improve the risk recognition and assessment practices and the meaningfulness of the disclosed information. Hence, we provide some examples and discuss potential avenues to address these challenges and adapt risk reporting accordingly.Originality/value – This conceptual paper contributes to the risk reporting and accountability research fields. Previous studies on communication during a crisis have focused on sustainability reporting. Thus, this study contributes to that literature by considering the role of risk reporting in times of an unexpected largescale global crisis, such as the COVID-19 pandemic, and by highlighting possibilities for moving risk reporting towards becoming more accountability base
Corporate governance quality and non-financial KPI disclosure comparability: UK evidence
No full textThis study examines the quality of non-financial disclosure in Strategic Reports, focusing on non-financial key performance indicators (NFKPIs). A vital issue for NFKPI disclosure quality deals with overtime comparability. As NFKPI disclosure is mainly based on managers’ discretional choices regarding which indicators to disclose and how, we argue that corporate governance could play a key role in affecting disclosure practices. The analysis of a sample of UK listed companies from different industries reveals that most companies consistently report NFKPIs and that disclosure practices are influenced by the quality of the board of directors. Additional analyses indicate that among board characteristics, experience in financial key roles is the most effective. Further, intangible intensity is found to be positively associated with NFKPI consistency. Finally, more leveraged and less profitable firms seem to pay more attention to disclosure consistency, supporting the argument that they are subject to more severe scrutiny. This study is the first to examine the relationship between governance quality and NFKPI consistency. It enlarges previous evidence on the relation between corporate governance and disclosure by supporting the role of the board of directors in monitoring non-financial reporting
Business Model Disclosures, Market Values, and Earnings Persistence:Evidence From the UK
Full text linkThis paper investigates the consequences of business model (BM) disclosures. Content analysis is used to assess the mandatory disclosure of BM in in 75 publicly listed companies' annual reports across a three-year period (2014–2016). The research applies a novel content analysis methodology that considers the way in which the relevance of BM disclosures is dependent on which particular BM a given company adopts. The empirical results show notably low levels of BM disclosure and no significant association between BM disclosures and market value. However, we find that BM disclosure provides insights into earnings quality by means of enhanced earnings persistence. These findings reveal that information about the BM itself does not make a difference to investors when it is not linked to financial outcomes. Instead, BM acts as a framework for organizing other disclosures, and provides complementary information about value generation, helping users understand how earnings are generated. These results are important for informing the policy-making process around extra-financial disclosures (e.g., EU Directive 2014/95/EU) and answer calls for research to inform future improvements to corporate and integrated reporting.</p
Effects of social, environmental, and institutional factors on sustainability report assurance: evidence from European countries
Full text linkPurpose
The purpose of this study is to extend existing knowledge on the determinants of sustainability report (SR) assurance practices. Four different theories – stakeholder theory, institutional theory, signaling theory and legitimacy theory – are used to formulate several hypotheses regarding the main factors that can influence a company’s decision to assure its SRs.
Design/methodology/approach
Using a sample of 417 listed organizations based in different European countries over five years, the effects of stakeholder commitment, country orientation toward sustainability, firm environmental performance and business ethics controversies on the decision to assure SRs are assessed.
Findings
The results show that a company’s decision to assure its SRs is motivated by the need to maintain good relations with its stakeholders (which is in line with stakeholder theory and legitimacy theory), as well as by the willingness to signal their sustainability performance (which is in line with signaling theory) and to gain legitimacy. On the contrary, business ethics controversies do not seem to be relevant to a company’s assurance practices.
Originality/value
This paper provides new insights into the influence that social, environmental and institutional factors have on assurance strategies. New factors that previous research does not investigate – environmental performance, business ethics controversies and corporate governance – are tested. Factors that are already investigated in the literature are considered from an original perspective of introducing alternative measures (e.g. for the scope of national sustainability policies)
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