Transparent Reporting on Financial Assets as a Determinant of a Company’s Value—A Stakeholder’s Perspective during the SARS-CoV-2 Pandemic and beyond

Beata Dratwińska-Kania, Aleksandra Ferens () and Piotr Kania
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Beata Dratwińska-Kania: Department of Accounting, Finance College, University of Economics in Katowice, ul. 1 Maja 50, 40-287 Katowice, Poland
Aleksandra Ferens: Department of Accounting, Finance College, University of Economics in Katowice, ul. 1 Maja 50, 40-287 Katowice, Poland
Piotr Kania: Department of Public Finance, Finance College, University of Economics in Katowice, ul. 1 Maja 50, 40-287 Katowice, Poland

Sustainability, 2023, vol. 15, issue 3, 1-20

Abstract: Background: Socio-economic changes prompt companies to disclose their sustainable development activities in the reporting, showing that they balance three capitals—economic, environmental, and social. On the other hand, while formulating strategies and goals, they consider the company’s widely understood environment, where its stakeholders are essential. As a result, the transparency and usefulness of the reported information are limited. Methods: The study employed financial statements’ content analysis and a statistical method (rank Spearman correlation, Shapiro–Wilk test). The percentage of change in critical areas for reporting transparency on financial assets was analyzed, before and during the SARS-CoV-2 pandemic. Results: The research indicated that the identified critical reporting areas concerning financial assets showed a greater value change during the pandemic. Correlations between the accounting value of the company and the same critical reporting areas were significant. Conclusion: It has been shown that larger companies can use more accounting policy instruments; therefore, the reporting transparency on financial assets is potentially lower for these companies. The transparency of the surveyed corporate reports during the pandemic was lower.

Keywords: financial assets; transparency; sustainable development; company’s value; income smoothing; SARS-CoV-2 pandemic (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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