COMMUNICATIONS

 

A more subtle set of information in corporate annual reports for disadvantaged stakeholderds

 

 

Christo J Cronjé

School of Accounting Sciences, University of South Africa

 

 

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ABSTRACT

The traditional corporate annual report consists of two types of disclosures, that is, mandatory and contextual disclosures. The research problem focuses on the issue whether full disclosure in corporate annual reports could entail mandatory and contextual disclosures as well as a more subtle set of information for disadvantaged stakeholders. To solve the research problem, use was mainly made of a literature review dealing with certain aspects of decision-useful financial reporting. The literature review was complemented by exploratory empirical research. It was found that full disclosure in corporate annual reports could consist of mandatory and contextual disclosures as well as a more subtle set of information for disadvantaged stakeholders.

Key words: Corporate annual reports, information needs of disadvantaged stakeholders, financial decision making

JEL: M14

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Accepted February 2010