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Determinants of The Level of Information Disclosure in Financial Statements Prepared in Accordance With IFRS

Author

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  • Anna Bialek-Jaworska
  • Anna Matusiewicz

    (University of Warsaw, Faculty of Economic Sciences)

Abstract

This paper aims to identify the factors determining the extent of mandatory and voluntary information disclosure in financial reports of selected Polish listed companies. It is particularly important in the context of reporting standards harmonisation and the related process of IFRS coming into common use in consolidated accounts since 2005. We used the Polish Corporate Disclosure Index (PCDI), designed by the research team led by Swiderska (2010), for non-financial companies. The PCDI index includes voluntary disclosures in financial statements, management reports and corporate social responsibility reports. Based on a panel study of factors determining the scope of information disclosed by 36 Polish public parent companies, forming capital groups, in the years 2005-2007 we demonstrated a negative correlation between the extent of mandatory and voluntary disclosure and the companies’ financial performance (ROE) except for possitive relation with disclosure in management reports. Probably, managers prefer to show off good results in management reports (impression management theory). When the company profitability was lower, managers explained the financial standing in more detail (signaling theory). Auditor plays the important role in voluntary and corporate social responsibility disclosures, but not in mandatory ones. Bigger companies disclose more in each area, in accordance with agency theory.

Suggested Citation

  • Anna Bialek-Jaworska & Anna Matusiewicz, 2015. "Determinants of The Level of Information Disclosure in Financial Statements Prepared in Accordance With IFRS," Journal of Accounting and Management Information Systems, Faculty of Accounting and Management Information Systems, The Bucharest University of Economic Studies, vol. 14(3), pages 453-482, September.
  • Handle: RePEc:ami:journl:v:14:y:2015:i:3:p:453-482
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    Citations

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    Cited by:

    1. Białek-Jaworska Anna & Krawczyk Tomasz, 2019. "Corporate bonds or bank loans? The choice of funding sources and information disclosure of Polish listed companies," Central European Economic Journal, Sciendo, vol. 6(53), pages 262-285, January.
    2. María Consuelo Pucheta‐Martínez & Inmaculada Bel‐Oms & Lúcia Lima Rodrigues, 2019. "The engagement of auditors in the reporting of corporate social responsibility information," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 26(1), pages 46-56, January.
    3. Galina Sabcheva, 2018. "Trends on port concession disclosures in concessionaire financial statements in Bulgaria," Economics and computer science, Publishing house "Knowledge and business" Varna, issue 2, pages 54-66.

    More about this item

    Keywords

    IFRS; Poland; mandatory disclosure; voluntary disclosure;
    All these keywords.

    JEL classification:

    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting
    • M42 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Auditing
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

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