Eu Non-Financial Reporting Research – Insights, Gaps, Patterns and Future Agenda

PurposeThis paper aims to investigate the non-financial reporting (NFR) practices of Hungarian listed public interest entities for 2016–2018 in terms of the required disclosure content based on the 2014/95/EU Directive (ED).Design/methodology/approach The authors apply content analysis methodology on Hungarian firms subject to mandatory reporting under the ED. The target variable in the multivariate model is the reporting quality (Qi) measured by a combined index.Findings The authors find that the ED had a moderate impact on Hungary's reporting quality because the overall disclosure of the sample only increased from low to medium level. The authors found that the value of intangible assets is a determinant of the reporting quality before and after the implementation of the ED. The findings support the effect of coercive isomorphism on Hungarian NFR practices.Research limitations/implications The limitation of the research is the number of firms examined. However, the authors covered the entire (non-bank) community of the Hungarian firms subject to the ED.Practical implications The authors suggest that reporting entities build upon the synergy between intellectual capital disclosure and NFR when elaborating their reporting strategies. The authors recommend the integration of ethical matters into corporate strategies and policies. Policymakers may consider the revision of the Hungarian regulations. The authors suggest academics embrace these topics in teaching.Originality/value To the best of the authors’ knowledge, this is the first study that investigates the impact of ED in the context of Hungary. The authors contribute to the existing literature by adding the results of the ridge regression model, highlighting the importance of intangible assets.

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“…A crucial step ahead of the road toward standardized NFR has been the publication of the EU Directive 2014/95/EU (ED) (Ştefănescu et al. , 2020).…”

Section: Literature Reviewmentioning

confidence: 99%

The non-financial reporting practices of Hungarian listed public interest entities considering the 2014/95/EU Directive

Lippai-Makra

Kovács

Kiss

2022

JAAR

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“…The EU Directive on NFI has received growing attention over time by academics (Stefanescu et al, 2020). Initially, some empirical studies have analyzed the quantity and quality of nonfinancial reporting before the implementation of the EU Directive (Carini et al 2018; Dumitru et al 2017; Manes‐Rossi et al 2018; Venturelli et al 2017; Venturelli et al 2019).…”

Section: Theoretical Framework and Hypotheses Developmentmentioning

confidence: 99%

Carrot or stick? An empirical analysis of the different implementation strategies of the EU directive on nonfinancial information across Europe

Mio

Fasan

Marcon

et al. 2021

Corp Soc Responsibility Env

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The recent EU Directive on nonfinancial information (NFI) disclosure allows Member States some discretion regarding its implementation. More specifically, it allows countries to decide whether: (a) information assurance is compulsory; (b) companies can waive NFI disclosure because of possible competitive harms (safe harbor); and (c) fines can be imposed on companies not disclosing NFI. We empirically test the impact of different implementation strategies on NFI quantity and quality, and we find that regulations providing incentives ('carrots') are more effective than regulations imposing costs ('sticks'). More specifically, while mandatory assurance and safe harbor have a positive impact on NFI quantity, fines do not. Our results contribute to the literature on NFI disclosure and inform regulators on the effectiveness of different implementation strategies.

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“…First of all, it is worth paying attention to the geographical location, production potential, consumer ability, the degree of infrastructure development of regions and other factors. There will be a full range of measures for the development of the economy for a specific region after complex analysis of the main indicators [16,17].…”

Section: Resultsmentioning

confidence: 99%

Cluster approach as the innovative model for the development of the regional economy (on the example of the Volgograd region)

et al. 2021

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Investment and innovation activity is one of the factors in the development of the region, and also contributes to the increase of economic and social potential. To maintain the competitiveness, adapt to changing conditions of the external and internal environment, as well as for the sustainable development of the region, it is necessary to form new achievements of science and technology. In this regard, the innovation activity and innovation policy of the region have the decisive importance. The actual problem is the transition of the country's economy to the innovative development. To solve this problem, it is necessary to develop methods that will restructure all spheres of social relations. The innovative model of economic development requires the formation of the effective transformation of new scientific achievements into new technologies, goods, services in the country and in the regions. They will have their real consumers in the market through the cluster approach.

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Eu Non-Financial Reporting Research – Insights, Gaps, Patterns and Future Agenda

Cited by 21 publications

References 40 publications

The non-financial reporting practices of Hungarian listed public interest entities considering the 2014/95/EU Directive

The non-financial reporting practices of Hungarian listed public interest entities considering the 2014/95/EU Directive

Carrot or stick? An empirical analysis of the different implementation strategies of the EU directive on nonfinancial information across Europe

Cluster approach as the innovative model for the development of the regional economy (on the example of the Volgograd region)

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