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Abstract:
The research for the annual reports quality and more specifically of their narrative segments has been underestimated, mainly due to the lack of trustful quality measurement and analysis methods of the businesses narrative information. This thesis, using two composed indicators, the non-weighted Index (Ma.Co.I) and the weighted Index (Ma.Co.Iw), examines the quality of narrative sections before and after I.F.R.S adoption to a sample of firms originate from Northern Europe, Western Europe and U.S.A. This time period is not characterized only by the reform of the accounting standards but also by the reform of management commentary standards. The results suggest that the I.F.R.S. adoption affect in positive way the overall annual reports quality. This positive relation is reflected more to the financial information (35%) than to ESG information regarding to environmental, social and corporate governance firms’ behavior (20%). Despite of the pressure for quality and transparency of annual reports by shareholders, our findings shows that a high volume of the sample uses techniques, during the disclosure process, for hiding information. This thesis using the OLS method by examining specific variables that may affect the quality of annual financial reports, giving significant and varied conclusions. In addition, the U.S.A compulsory standards (MD&A - Management Discussion & Analysis) does not offer significant quality improvement in relation to firm operating in Europe, suggesting that mandatory roles are not always a channel of better information. In other words, the adoption of mandatory rules is not a panacea, nor does it necessarily contribute to better corporate information, but presupposes their deliberate, honest and methodical attachment to the adoption of stricter criteria in relation to more objective and more credible financial statements.
🔗 https://www.didaktorika.gr/eadd/handle/10442/44357?locale=en
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