Analysis of information disclosure in corporate reporting in terms of compliance with integrated reporting principle Strategic Focus and Future Orientation
Subject The paper analyzes the disclosure of information in annual reports in terms of compliance with the principle of integrated reporting Strategic Focus and Future Orientation. Objectives The aim is to study the quality of disclosure of information on financial standing and financial results based on financial statements presented by Russian companies, and determine to what extent the companies are ready to openly interact with all stakeholders. Methods We used scientific methods of analysis, synthesis, comparison, as well as methods of economic-mathematical modeling, in particular, correlation analysis and semantic analysis. Results We summarized the results of semantic analysis of the texts of reports to determine to what extent the opinion of senior management is pronounced about the company's ability to create value in the short, medium and long term. The paper presents the results of correlation analysis of dependence of company's financial ratios and the views of senior management on its financial position. Conclusions and Relevance We justified the conclusion about problems with the quality of disclosure in corporate financial reporting of Russian companies and its non-compliance with the Strategic Focus and Future Orientation principle. This fact shows that companies are not ready for open interaction with all stakeholders. It is required to introduce a new system of financial indicators and their interpretation in the context of integrated reporting. This will enable an effective collaboration of company management with stakeholders and increase the level of confidence.
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