Does Information Overload of Annual Reports Matter?

San, Ong Tze; Teh, Boon Heng; Seng, Kai; Ng, Sin Huei

doi:10.5430/ijfr.v11n2p243

Cited by 6 publications

(4 citation statements)

References 14 publications

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“…Profitable companies have supplemental financial resources, so they might be freer and more flexible in disclosing their CSR practices to a great extent (Haniffa and Cooke, 2005). Abu Bakar and Ameer (2011), Rahman (2014) and Ong et al (2020) provide evidence that profitable companies provide more readable reports. The last control variable related to firm characteristics included in this study is leverage.…”

Section: Control Variablesmentioning

confidence: 99%

Revised guidelines for sustainability reporting: readability and assurance

Bakry,

Azhar,

Kishan

2023

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PurposeIn 2015, Bursa Malaysia Berhad (BMB) issued the first edition of the Sustainability Reporting Guide (SRG 1.0) to aid Malaysian public listed companies (PLCs) in preparing corporate social responsibility reporting (CSRR). After receiving users' commentaries, BMB issued the second edition of SRG (SRG 2.0) in 2018. Given the major amendments in CSRR regulatory guidelines, there is a need to analyze the readability of CSRR in light of the new guide and to investigate the combined effects of SRG 2.0 and the assurance of CSR information on the readability of CSRR.Design/methodology/approachThis study employs two readability indices to compare the readability of CSRR ex-ante and ex-post the implementation of SRG 2.0 across a sample of Malaysian PLCs that maintained their market capitalization among the top 100 companies.FindingsThe practical findings of the multivariate regression revealed that the readability of CSRR is reduced after the introduction of SRG 2.0. Meanwhile, the readability of CSRR is positively influenced by combining the effect of SRG 2.0 and CSRR assurance.Practical implicationsThis study provides empirical evidence that the amendment to CSRR has made CSR reports more challenging to read and thus reduces their communicative value. Therefore, in their quest to mandate more CSRR information from companies, regulators might need to consider advocating that such data is reported in a readable manner. This study also shows the influential role of CSR information assurance in enhancing the readability of CSRR.Originality/valueThis study helps assess the readability of CSRR among Malaysian companies after the adoption of SRG 2.0. It also contributes to the literature on CSRR, as the readability of such reporting within the context of Malaysia has not been widely examined in previous studies.

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Section: Control Variablesmentioning

confidence: 99%

Revised guidelines for sustainability reporting: readability and assurance

Bakry,

Azhar,

Kishan

2023

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“…The EU Directive 2014/95/EU and guidelines set the rules for large public interest entities for the mandatory implementation of this information in order to ensure high-quality, relevant, useful, consistent and more comparable information (environmental, social and governance-related) in a way that fosters resilient sustainable growth and employment, and provides transparency to stakeholders [4] (p. 4). With the release of non-financial information, stakeholders are now concerned about "information overload" because they receive more information than they need and because the information they receive about sustainability is confusing and not homogeneous across companies [12][13][14].…”

Section: Literature Reviewmentioning

confidence: 99%

Non-Financial Information in Hotel Companies

Vlašić

Poldrugovac

2022

Sustainability

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The enactment of EU Directive 2014/95/EU and EU Guidelines 2017/C215/01 for large European public interest entities with more than 500 employees recognised the importance of non-financial information and made its disclosure mandatory. The importance of disclosing non-financial information for the hospitality industry is significant, as it is an industry that is highly sensitive and connected to the environment and social interactions. The aim of this paper is to investigate the content of non-financial information disclosed by Croatian hotel companies that list their shares on the financial market since this became mandatory. For this reason, the following research questions were posed: Is the non-financial information presented in the reports of Croatian hotel companies sufficient? If this information is insufficient, how can its content be improved? To answer these research questions, a content analysis of non-financial information in relation to general information, emissions and pollution prevention, sustainability, other environmental information, and EU Directive requirements from publicly available sources of hotel companies was conducted. The research results show that Croatian hotel companies mainly publish satisfactory levels of non-financial information related to waste management and recycling, as well as energy and water consumption, while the content of other non-financial information should be improved. The research results will be used in defining and improving the content of non-financial information for hotel companies as guidelines for publishing non-financial information specifically tailored to the hospitality industry.

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“…"Problems in searching and locating information are exacerbated to the extent that individual users have only limited time to absorb information for any given company" (Barker et al, 2013). In addition, "more disclosures in annual reports may increase the cost of preparing the annual report as well as confuse the investors and eventually affect their investment decision" (Ong et al, 2020).…”

Section: Disclosure Of Irrelevant Information In Financial Reportsmentioning

confidence: 99%

Notes to the Financial Statements: Current State and Improvement

Rep

2021

Business Systems Research Journal

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Background: Prior studies have revealed a disclosure problem in financial statements, primarily in narrative reports. Three main problem areas have been identified: insufficient relevant information, too much irrelevant information, and low-level communication. Micro and small entities face the most difficulties. Objectives: The main objective of this research is to propose a solution to existing disclosure problems to contribute towards improving the quality of financial reporting of smaller entities. Methods/Approach: To improve the reporting model for smaller entities, a survey has been conducted using a structured questionnaire on a sample of non-financial entities registered in Croatia. Based on results interpretations, standardized notes have been proposed. Results: 167 respondents have shared their thoughts about current disclosure issues and possible improvements, showing their awareness of disclosure problems and willingness for change. Given their opinions, the proposal has been made. Conclusions: The main contribution of the paper is the creation of a proposal for standardized, integrated, and digitalized notes to the financial statements based on the principle of materiality, primarily addressed to micro but also small entities from the non-financial sector. The paper extends previous proposals which did not focus on their structure and digitalization.

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Does Information Overload of Annual Reports Matter?

Cited by 6 publications

References 14 publications

Revised guidelines for sustainability reporting: readability and assurance

Revised guidelines for sustainability reporting: readability and assurance

Non-Financial Information in Hotel Companies

Notes to the Financial Statements: Current State and Improvement

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