Australian corporate political donation disclosures

Edward Tello, James Hazelton and Shane Vincent Leong

Accounting, Auditing & Accountability Journal, 2019, vol. 32, issue 2, 581-611

Abstract: Purpose - A primary tool for managing the democratic risks posed by political donations is disclosure. In Australia, corporate donations are disclosed in government databases. Despite the potential accountability benefits, corporations are not, however, required to report this information in their annual or stand-alone reports. The purpose of this paper is to investigate the quantity and quality of voluntary reporting and seek to add to the nascent theoretical understanding of voluntary corporate political donations. Design/methodology/approach - Corporate donors were obtained from the Australian Electoral Commission database. Annual and stand-alone reports were analysed to determine the quantity and quality of voluntary disclosures and compared toO’Donovan’s (2002)legitimation disclosure response matrix. Findings - Of those companies with available reports, only 25 per cent reported any donation information. Longitudinal results show neither a robust increase in disclosure levels over time, nor a clear relationship between donation activity and disclosure. The findings support a legitimation tactic being applied to political donation disclosures. Practical implications - The findings suggest that disclosure of political donations in corporate reports should be mandatory. Such reporting could facilitate aligning shareholder and citizen interests; aligning managerial and firm interests and closing disclosure loopholes. Originality/value - The study extends the literature by evaluating donation disclosures by companies known to have made donations, considering time-series data and theorising the findings.

Keywords: Australia; Legitimacy theory; Political contribution; Campaign finance; Corporate political donation; Social and environmental accounting disclosures (search for similar items in EconPapers)
Date: 2019
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Persistent link: https://EconPapers.repec.org/RePEc:eme:aaajpp:aaaj-04-2016-2515

DOI: 10.1108/AAAJ-04-2016-2515

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