A Text-Mining Analysis on the Review of the Non-Financial Reporting Directive: Bringing Value Creation for Stakeholders into Accounting

Simona Fiandrino and Alberto Tonelli
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Simona Fiandrino: Department of Management, University of Turin, 10134 Turin, Italy
Alberto Tonelli: Department of Management, University of Turin, 10134 Turin, Italy

Sustainability, 2021, vol. 13, issue 2, 1-18

Abstract: The recent Review of the Non-Financial Reporting Directive (NFRD) aims to enhance adequate non-financial information (NFI) disclosure and improve accountability for stakeholders. This study focuses on this regulatory intervention and has a twofold objective: First, it aims to understand the main underlying issues at stake; second, it suggests areas of possible amendment considering the current debates on sustainability accounting and accounting for stakeholders. In keeping with these aims, the research analyzes the documents annexed to the contribution on the Review of the NFRD by conducting a text-mining analysis with latent Dirichlet allocation (LDA) probabilistic topic model (PTM). Our findings highlight four main topics at the core of the current debate: quality of NFI, standardization, materiality, and assurance. The research suggests ways of improving managerial policies to achieve more comparable, relevant, and reliable information by bringing value creation for stakeholders into accounting. It further addresses an integrated logic of accounting for stakeholders that contributes to sustainable development.

Keywords: Non-Financial Reporting Directive (NFRD); non-financial information disclosure; text-mining analysis; stakeholder accounting; sustainable development (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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