Study of the Qualities of the Indicators to be Included in the Sustainability Information
Keywords:
non-financial information statement, annual report, inancial statements, non-financial informationAbstract
When in 2018, the legislator established the obligation to prepare the Non-Financial Information Statement (EINF), it revolutionized the way of structuring the contents of the Annual Report. It was the first time that it was legislated, in Spain, the presentation of sustainability information. Our research aims to identify the way to present non-financial information in Spanish listed groups since then, in order to propose improvements in the presentation. The main conclusion is that greater value must be given to sustainability within the organization, not only in the issuance of the EINF, but also in the organizational design.
References
S. Abed, B. Al-Najjar, C. Roberts (2016) Measuring annual report narratives disclosure: Empirical evidence from forward-looking information in the UK prior the financial crisis. 31(4), 338-361.
S. Abed, S. Al-Okdeh, K. Nimer (2011) The inclusion of forecasts in the narrative sections of annual reports and their association with firms characteristics: The case of Jordan. 4(4), 264-271.
Acciona (2020) Informe integrado 2020. https://www.acciona.com/es/accionistas-inversores/informacion-financiera/informe-anual-integrado/
(2019) Informe integrado 2019. https://www.acciona.com/es/accionistas-inversores/informacion-financiera/informe-anual-integrado/
(2018) Informe integrado 2018. https://www.acciona.com/es/accionistas-inversores/informacion-financiera/informe-anual-integrado/
ACS (2020) Informe anual integrado 2020. https://www.grupoacs.com/accionistas-e-inversores/informe-anual/
(2019) Informe anual integrado 2019. https://www.grupoacs.com/acc-ionistas-e-inversores/informe-anual/
(2018) Informe anual integrado 2018. https://www.grupoacs.com/accionistas-e-inversores/informe-anual/
O. Akisik, G. Graham (2019) Integrated reports, external assurance and financial performance: An empirical analysis on North American firms. 10(2), 317-350.
K. Aljifri, K. Hussainey (2007) The determinants of forward-looking information in annual reports of UAE companies. 22(9), 881-894.
M. A. Álvarez, M. R. Babío, O. Suárez, R. Vidal (2012) A utilidade da información narrativa: análise do contido do informe de xestión. 21(1), 9-31.
Asociación Española de Contabilidad y Administración de Empresas [AECA] (2020) Modelo AECA de información integrada para la elaboración del Estado de Información No Financiera.
Asociación Española de Contabilidad y Administración de Empresas [AECA] (2010) Normalización de la información sobre responsabilidad social corporativa.
M. R. Babío, O. Suárez, R. Vidal (2013) Audit, audit committees and narrative reporting bias. 22(1), 205-228.
P. Balata, G. Breton (2005) Narratives vs. numbers in the annual report: Are they giving the same message to the investors?. 4(2), 5-25.
J. Banghøj, P. Plenborg (2008) Value relevance of voluntary disclosure in the annual report. 48(2), 159-180.
V. Beattie (2014) Accounting narratives and the narrative turn in accounting research: Issues, theory, methodology, methods and a research framework. 46(2), 111-134.
V. Beattie, B. McInnes, S. Fearnley (2004) A methodology for analysing and evaluating narratives in annual reports: A comprehensive descriptive profile and metrics for disclosure quality attributes. 28(3), 205-236.
A. Beyer, D. A. Cohen, T. Z. Lys, B. R. Walther (2010) The financial reporting environment: Review of the recent literature. 50(2-3), 296-343.
R. Bloomfield (2008) Discussion of “Annual report readability, current earnings, and earnings persistence”. 45(2-3), 248-252.
C. Botosan (1997) Disclosure level and the cost of equity capital. 72(3), 323-349.
F. Bravo, M. C. Abad, M. Trombetta (2009) Disclosure indices design: Does it make a difference?. 12(2), 253-277.
C. H. Cho, G. Michelon, D. M. Patten (2012) Impression management in sustainability reports: An empirical investigation of the use of graphs. 12(1), 16-37.
M. A. Clatworthy, M. J. Jones (2006) Differential patterns of textual characteristics and company performance in the chairman's statement. 19(4), 493-511.
(2003) Financial reporting of good news and bad news: Evidence from accounting narratives. 33(3), 171-185.
Comisi%C3%B3n Europea (2017) Directrices sobre la presentaci%C3%B3n de informes no financieros. (Metodolog%C3%ADa para la presentaci%C3%B3n de informaci%C3%B3n no financiera).
Comisión Nacional del Mercado de Valores (2013) Guía para la elaboración del informe de gestión de las sociedades cotizadas.
J. K. Courtis (2004) Corporate report obfuscation: Artefact or phenomenon?. 36(3), 291-312.
Deloitte (2019) Annual report insights 2019. Surveying FTSE reporting.
D. Dienes, R. Sassen, J. Fischer (2016) What are the drivers of sustainability reporting? A systematic review. 7(2), 154-189.
Directiva 2014/95/UE del Parlamento Europeo y del Consejo, de 22 de octubre de 2014, por la que se modifica la Directiva 2013/34/UE en lo que respecta a la divulgación de información no financiera e información sobre diversidad por parte de determinadas grandes empresas y determinados grupos.
J. Dumay, C. Bernardi, J. Guthrie, P. Demartini (2016) Integrated reporting: A structured literature review. 40(3), 166%E2%80%93185.
R. G. Eccles, M. P. Krzus (2010) One report. Integrated reporting for a sustainable strategy.
T. Elshandidy, I. Fraser, K. Hussainey (2015) What drives mandatory and voluntary risk reporting variations across Germany, UK and US?. 47(4), 376-394.
M. Enamul (2017) Why company should adopt integrated reporting?. 7(1), 241-248.
Ernst & Young (2020) Rethinking Sustainability. III Informe comparativo sobre los Estados de la Informaci%C3%B3n No Financiera (EINF) del IBEX 35.
Ernst & Young (2019) Rethinking Sustainability. Estudio comparativo de los estados de informaci%C3%B3n no financiera (EINF) del IBEX 35.
L. M. Falschunger, C. Eisl, H. Losbichler, A. M. Greil (2015) Impression management in annual reports of the largest European companies: A longitudinal study on graphical representations. 16(3), 383-399.
Financial Accounting Standards Board (2010) Conceptual framework for financial reporting – Chapter 1, The objective of general purpose financial reporting, and Chapter 3, qualitative characteristics of useful financial information (a replacement of FASB Concepts Statements no. 1 and no. 2).
(2006) Preliminary views: Conceptual framework for financial reporting: Objective of financial reporting and qualitative characteristics of decision-Useful financial reporting information.
(2001) Improving business reporting: Insights into enhancing voluntary disclosures.
(1978) Statement of financial accounting concepts no. 1. Objectives of financial reporting by business enterprises.
Financial Reporting Council (2018) Guidance on the strategic report.
P. Flöstrand, N. Ström (2006) The valuation relevance of non-financial information. 29(9), 580-597.
J. V. Frías, L. Rodríguez, I. M. García (2013) Explanatory factors of integrated sustainability and financial reporting. 23(1), 56-72.
I. M. García, P. Martín, M. Granada, L. Rodríguez (2019) La divulgación de información no financiera en España. ((69)), 15-22.
German Accounting Standards Board (2005) Management reporting.
Global Reporting Initiative (2015) G4. Guía para la elaboración de memorias de sostenibilidad. Principios y contenidos básicos.
E. Goicoechea, F. Gómez-Bezares, J. V. Ugarte (2019) Integrated reporting assurance: Perceptions of auditors and users in Spain. ((3)), 713.
M. Hossain, K. Ahmed, J. M. Godfrey (2005) Investment opportunity set and voluntary disclosure of prospective information: A simultaneous equations approach. 32(5-6), 871-907.
M. Hossain, Hammami (2009) Voluntary disclosure in the annual reports of an emerging country: The case of Qatar. 25(2), 255-265.
K. Hussainey, Aal-Eisa (2009) Disclosure and dividend signaling when sustained earnings growth declines. 24(5), 445-454.
K. Hussainey, T. Schleicher, M. Walker (2003) Undertaking large-scale disclosure studies when AIMR-FAF ratings are not available: The case of prices leading earnings. 33(4), 275-294.
K. Hussainey, M. Walker (2009) The effects of voluntary disclosure and dividend propensity on prices leading earnings. 39(1), 275-294.
T. Laudal (2011) Drivers and barriers of CSR and the size and internationalization of firms. 2, 234-256.
E.M. Ibáñez Jiménez (2021) Análisis de los modelos de integración de la información financiera y no financiera en los grupos cotizados del IBEX 35. 30(2), 7303.
Instituto de Censores Jurados de Cuentas de España (2019) Guía de actuación sobre encargos de verificación del Estado de Información No Financiera.
Instituto de Contabilidad y Auditoría de Cuentas (2020) Guía informativa sobre la aplicación de la ley 11/2018, de 28 de diciembre, por la que se modifica el código de comercio, el texto refundido de la ley de sociedades de capital aprobado por el real decreto legislativo 1/2010, de 2 de julio, y la ley 22/2015, de 20 de julio, de auditoría de cuentas, en materia de información no financiera y diversidad.
International Airlines Group (2018) Informe y cuentas anuales 2018. https://www.iairgroup.com/es-ES/inversores-y-accionistas/resultados-e-informes
(2013) International Standard on Assurance Engagements (ISAE) 3000 revised, assurance engagements other than audits or reviews of historical financial information.
(2013) International framework.
(2010) Management commentary.
(2005) Management commentary.
(1989) Marco conceptual para la preparaci%C3%B3n y presentaci%C3%B3n de los estados financieros.
(2015) Assurance on . Overview of feedback and call to action.
(2013) International Framework.
M. Khan, G. Serafeim, A. Yoon (2016) Corporate sustainability: First evidence on materiality. 91(6), 1697-1724.
M. Larrán Jorge, E. García Meca (2004) Costes, beneficios y factores ligados a la pol%C3%ADtica de divulgaci%C3%B3n financiera. 14, 75-111.
S. Leventis, P. Weetman (2004) Impression management: Dual reporting and voluntary disclosure. 28(3), 307-328.
F. Li (2010) The information content of forward-looking statements in corporate filings. A naive bayesian machine learning approach. 48(5), 1049-1102.
(2008) Annual report readability, current earnings, and earnings persistence. 45(2-3), 221-247.
A. Moreno, P. Capriotti (2009) Communicating CSR, citizenship and sustainability on the web. 13(2), 157-175.
V. Muslu, S. Radhakrishnan, K. R. Subramanyam, D. Lim (2015) Forward-looking MD&A disclosures and the information environment. 61(5), 931-948.
M%C3%A1sM%C3%B3vil (2018) Cuentas anuales consolidadas auditadas a 31 de diciembre 2018. Informe de gesti%C3%B3n consolidado 2018. https://www.grupomasmovil.com/informacion-economica-y-financiera/memorias-anuales/
M. O'Sullivan, M. Percy, J. Stewart (2008) Australian evidence on corporate governance attributes and their association with forward-looking information in the annual report. 12(1), 5-35.
L. P%C3%A9rez-Batres, J. Doh, M. Van, M. Pisani (2012) Stakeholder Pressures as Determinants of CSR Strategic Choice: Why do Firms Choose Symbolic Versus Substantive Self-Regulatory Codes of Conduct?. 110(2), 157-172.
PriceWaterhouseCoopers (2019) The reporting dilemma %E2%80%93 balancing the needs of shareholders and other stakeholders.
C. Reverte Maya (2015) %E2%80%9CLa nueva Directiva Europea de Reporting no Financiero%E2%80%9D. (110), 17-22.
S. W. G. Robb, L. E. Single, M. T. Zarzeski (2001) Nonfinancial disclosures across Anglo-American countries. 10(1), 71-83.
L. Rodríguez, L. C. Noguera (2014) Corporate reporting on risks: Evidence from Spanish companies. 17(2), 116-129.
P. Rodríguez-Gutiérrez, S. Sánchez-Cañizares, F. Fuentes-García (2017) Determinantes dos indicadores de calidade divulgativa das memorias de sostenibilidad: o caso da banca espa%C3%B1ola. 26(2), 43-58.
B. A. Rutherford (2003) Obfuscation, textual complexity and the role of regulated narrative accounting disclosure in corporate governance. 7(2), 187-210.
P. Salido Hernández, J. M. Santos Jaén, M. Gracia Ortiz (2018) Información no financiera como herramienta de transparencia. ((40)), 116-132.
A. Sáez, A. Haro de Rosario, M. D. C. Caba (2014) Hacia una información corporativa integrada: evidencias en la industria de productos del cuidado de la salud. 6(2), 317-340.
T. Schleicher, K. Hussainey, M. Walker (2007) Loss firms' annual report narratives and share price anticipation of earnings. 39(2), 153-171.
T. Schleicher, M. Walker (2010) Bias in the tone of forward-looking narratives. 40(4), 371-390.
T. Schleicher (2012) When is good news really good news?. 42(5), 547-573.
H. Stolowy, L. Paugam (2018) The expansion of non-financial reporting: An exploratory study. 48(5), 525-548.
O. Suárez, M. R. Babío, M. A. Álvarez, R. Vidal Lopo (2019) Las atribuciones egoístas en los informes de gestión y diversidad de género en los órganos directivos de la empresa. 48(1), 87-112.
R. Sydserff, P. Weetman (2002) Developments in content analysis: a transitivity index and scores. 15(4), 523-545.
U.S. Securities and Exchange Commission (2003) Interpretation: Commission guidance regarding management's discussion and analysis of financial condition and results of operations.
R. S. O. Wallace, K. Naser, A. Mora (1994) The relationship between the comprehensiveness of corporate annual reports and firm characteristics in Spain. 25(97), 41-53.
P. Yeoh (2010) Narrative reporting: The UK Experience. 52(3), 211-231.
Downloads
Published
Issue
Section
License
Copyright (c) 2023 Authors and Global Journals Private Limited
This work is licensed under a Creative Commons Attribution 4.0 International License.
