Theoretical Framework for Corporate Disclosure Research

Abstract

This paper discusses the theoretical frameworks for a corporate disclosure research. It introduces the general nature and types of theories. It then compares and contrasts views of what constitutes a theory. There was no single view of theory. There were differences in approaches and interpretations. The conception of a theory and its relationship with research is discussed in light of both quantitative and qualitative methods of research and their contribution to theory are assessed. Both quantitative and qualitative methods contributed to theory building, theory testing, and substantiating, or refuting their propositions. Although, positive accounting theory had grown as one of the most significant accounting research program, the broad theories of accounting included interpretive and normative theories as well. The review of the literature revealed that there were a number of theories associated with corporate accounting and disclosure, amongst them were agency theory, signaling theory, the accountability theory, legitimacy theory, contingency theory, stakeholder theory, and resource dependency theory.

Determinants of online corporate reporting in three Latin American markets

“…Other theories, such as signalling theory, legitimacy theory, stakeholder theory, political cost theory and contingency theory, have been put forward and linked with the first two to a greater or lesser extent. See Sharma (2013) for a complete review of these theories and previous literature on them. More recently Koonce et al (2011) have proposed using key theories from psychology in research on financial reporting and voluntary disclosure.…”

Corporate Governance and Firm Performance: The Role of Transparency & Disclosure in Banking Sector of Pakistan

“…From the prospective of agency theory, problem in transparency and disclosure lies with asymmetry of information between managers and stakeholders. Agency theory serves on the concept of separation of owner and managers thus creating a principal and agent relationship among them (Sharma, 2013). One of the conflicts in agency 156 Volume 43…”

Corporate Governance and Firm Performance: The Role of Transparency & Disclosure in Banking Sector of Pakistan

“…From the prospective of agency theory, problem in transparency and disclosure lies with asymmetry of information between managers and stakeholders. Agency theory serves on the concept of separation of owner and managers thus creating a principal and agent relationship among them (Sharma, 2013). One of the conflicts in agency…”