Non-financial information and their reporting—evidence of small and medium-sized enterprises and large corporations on the Czech capital market

Jaroslav Sedláček; Veronika Popelková; Jaroslav Sedláček; Veronika Popelková

doi:10.3934/NAR.2020012

National Accounting Review

2020, Volume 2, Issue 2: 204-216. doi: 10.3934/NAR.2020012

Previous Article Next Article

Research article

Non-financial information and their reporting—evidence of small and medium-sized enterprises and large corporations on the Czech capital market

Faculty of Economics and Administration, Department of Finance, Masaryk University, Lipová 41a, 60200 Brno, Czech Republic

Received: 24 April 2020 Accepted: 10 June 2020 Published: 15 June 2020
JEL Codes: G32, M21, M41

This article analyzes the impact of mandatory disclosure of non-financial information in the financial statements of business corporations. The research method is regression and correlation analysis and statistical testing of hypotheses. The sample for empirical research is compiled from the accounting statements of all corporations traded on the Czech capital market in the period from 2013 to 2018 and contain 264 reports. The results of the research confirmed the growing trend of publishing non-financial information and at the same time a significant share of large corporations compared to small and medium-sized enterprises (SMEs). The positive result of the research testifies about the following of global trends in the reporting of non-financial information by corporations on the Czech capital market, but despite the efforts of regulators, significant differences in the quantity and quality of reports were confirmed.
- non-financial information,
- corporate social responsibility,
- corporate annual report,
- environmental,
- social and governance reporting,
- global reporting initiative
Citation: Jaroslav Sedláček, Veronika Popelková. Non-financial information and their reporting—evidence of small and medium-sized enterprises and large corporations on the Czech capital market[J]. National Accounting Review, 2020, 2(2): 204-216. doi: 10.3934/NAR.2020012

Related Papers:

Abstract

This article analyzes the impact of mandatory disclosure of non-financial information in the financial statements of business corporations. The research method is regression and correlation analysis and statistical testing of hypotheses. The sample for empirical research is compiled from the accounting statements of all corporations traded on the Czech capital market in the period from 2013 to 2018 and contain 264 reports. The results of the research confirmed the growing trend of publishing non-financial information and at the same time a significant share of large corporations compared to small and medium-sized enterprises (SMEs). The positive result of the research testifies about the following of global trends in the reporting of non-financial information by corporations on the Czech capital market, but despite the efforts of regulators, significant differences in the quantity and quality of reports were confirmed.

References

[1]	Aguilar FJ (1967) Scanning the Business Environment, New York: Macmillan.
[2]	Avrampou A, Skouloudis A, Iliopoulos G, et al. (2019) Advancing the Sustainable Development Goals: Evidence from leading European banks. Sust Dev 27: 743-757.
[3]	Bohušová H (2011) General Approach to the IFRS and US GAAP Convergence. Acta Univ Agric Silvic Mendelianae Brun 54: 27-36.
[4]	Darnall N, Henriques I, Sadorsky P (2010) Adopting proactive environmental strategy: the influence of stakeholders and firm size. J Manage Stud 47: 1072-1094. doi: 10.1111/j.1467-6486.2009.00873.x
[5]	Deegan CM (2014) Financial accounting theory, Sydney: McGraw-Hill Education Pty, Ltd.
[6]	Deloitte (2018) Global Human Capital Trends 2018. Available from: https://www2.deloitte.com/au/en/pages/human-capital/articles/human-capital-trends.html.
[7]	Engert S, Baumgarter RJ (2016) Corporate sustainability strategy-bridging the gap between formulation and implementation. J Clean Prod 113: 822-834. doi: 10.1016/j.jclepro.2015.11.094
[8]	Evangelinos KI, Skouloudis A (2014) European perspectives on corporate non-financial disclosure: Evidence from the Southeast. Int J Discl Governance 11: 33-53. doi: 10.1057/jdg.2012.13
[9]	EY (2016) The Road to Reliable Non-Financial Reporting. Available from: https://www.slideshare.net/turloughguerin/eys-report-the-road-to-reliable-nonfinancial-reporting-2016.
[10]	Gonzalez-Ramos MI, Donate MJ, Guadamillas F (2018) The Effect of Technological Posture and Corporate Social Responsibility on Financial Performance Through Corporate Reputation. Int J Innovation 6: 164-179. doi: 10.5585/iji.v6i2.244
[11]	Halkos G, Skouloudis A (2016) National CSR and institutional conditions: An exploratory study. J Clean Prod 139: 1150-1156. doi: 10.1016/j.jclepro.2016.07.047
[12]	Hasprová O, Brabec Z (2014) The Importance of Intangible Assets in a Company Engaged in the Development of Advanced Technologies. Proceedings of the SGEM International Multidisciplinary Scientific Conferences on Social Sciences and Arts SGEM 2014, II: 769-776.
[13]	Ioannou I, Serafeim G (2011) The Consequences of Mandatory Corporate Sustainability Reporting. HBS Working Paper Series, 11-100.
[14]	Myšková R, Hájek P (2019). Relationship between corporate social responsibility in corporate annual reports and financial performance of the US companies. J Int Stud 12: 269-282. doi: 10.14254/2071-8330.2019/12-1/18
[15]	Kaplan RS, Norton DP (1996) The Balanced Scorecard: Translating Strategy into Action, Boston: Harvard Business Publishing.
[16]	Kašparová K, Škapa R (2008) Insight into Corporate Social Responsibility practices of Czech companies. J Global Strat Manage 2: 47-57. doi: 10.20460/JGSM.2008218486
[17]	KPMG (2017) The road ahead. Available from: https://assets.kpmg/content/dam/kpmg/xx/pdf/2017/10/kpmg-survey-of-corporate-responsibility-reportin.
[18]	Marrewijk M (2003) Concepts and Definitions of CSR and Corporate Sustainability: Between Agency and Communion. J Bus Ethics 44: 95-105. doi: 10.1023/A:1023331212247
[19]	Peters JP, Waterman RH (2004) In search of excellence, New York: HarperCollins Publishers, Inc.
[20]	Popelková V, Sedláček J (2019) Implementation of the European Directive on Non-financial Information in the European Economic Area. Proceedings of the 16th International Scientific Conference European Financial Systems 2019. Brno: Masaryk University Press, 2019, 443-451.
[21]	Porter ME (2008) The Five Competitive Forces that Shape Strategy. Harv Bus Rev 88: 78-93.
[22]	Porter ME, Kramer MR (2006) Strategy and society: The link between competitive advantage and corporate social responsibility. Harv Bus Rev 84: 76-92.
[23]	Sedláček J (1999) Účetní data v rukou manažera-finanční analýza v řízení firmy, Brno: Computer Press.
[24]	Standard Ethics (2019) SE Rating. Available from: http://www.standardethics.eu/company/esg-model.html.
[25]	United Nations 70/1 (2015). Transforming our world: the 2030 Agenda for Sustainable Development. Available from: https://www.un.org/ga/search/view_doc.asp?symbol=A/RES/70/1&Lang=E.
[26]	Waddock SA, Bodwell Ch, Graves SB (2002) Responsibility: The new business imperative. Acad Manage Perspect 16: 132-148.
[27]	Wang H, Choi JA (2010) New Look at the Corporate Social-Financial Performance Relationship: The Moderating Roles of Temporal and Interdomain Consistency in Corporate Social Performance. J Manage 39: 416-441.
[28]	WCED-World Commission on Environment and Development (1983) Our Common Future. Available from: https://sustainabledevelopment.un.org/content/documents/5987our-common-future.pdf
[29]	Wolf J (2014) The relationship between sustainable supply chain management, stakeholder pressure, and corporate sustainability performance. J Bus Ethics 119: 317-328. doi: 10.1007/s10551-012-1603-0

Reader Comments

Your name:*

Email:*
© 2020 the Author(s), licensee AIMS Press. This is an open access article distributed under the terms of the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0)