The rising emphasis on the business model (BM) as a reportable element reflects the view it constitutes one of the key starting point for investors’ analysis. In spite of this, recent academic and professional studies describe current reporting on BM as uninformative: too optimistic, generic and incomplete. The International Integrated Reporting Council claims that these limitations may be overcome by mean of the so-called “Integrated Report” (IR), a voluntary report which is expected to offer a complete and balanced representation of how organizations create value by mean of their BM. Drawing on impression management (IM) framework, the paper investigates the informativeness of BM disclosure by focussing on the tone of the information provided by European early adopters. By performing an in-depth manual content analysis and a multivariate statistical analysis, the paper shows that a positive tone of BM disclosure is significantly associated with weak corporate governance, bad performance and low verifiability of the disclosure itself. Our findings support IM hypotheses of managers using disclosure to be perceived favourably by their audience. This evidence has relevant implications for both accounting scholars and practitioners, since it questions the role of the IR in improving reporting on BM.

The tone of business model disclosure: an impression management analysis of the integrated reports

STACCHEZZINI, Riccardo;LAI, Alessandro
2016-01-01

Abstract

The rising emphasis on the business model (BM) as a reportable element reflects the view it constitutes one of the key starting point for investors’ analysis. In spite of this, recent academic and professional studies describe current reporting on BM as uninformative: too optimistic, generic and incomplete. The International Integrated Reporting Council claims that these limitations may be overcome by mean of the so-called “Integrated Report” (IR), a voluntary report which is expected to offer a complete and balanced representation of how organizations create value by mean of their BM. Drawing on impression management (IM) framework, the paper investigates the informativeness of BM disclosure by focussing on the tone of the information provided by European early adopters. By performing an in-depth manual content analysis and a multivariate statistical analysis, the paper shows that a positive tone of BM disclosure is significantly associated with weak corporate governance, bad performance and low verifiability of the disclosure itself. Our findings support IM hypotheses of managers using disclosure to be perceived favourably by their audience. This evidence has relevant implications for both accounting scholars and practitioners, since it questions the role of the IR in improving reporting on BM.
Business Model · Integrated Reporting · Impression Management · Corporate Governance · Thematic manipulation · Disclosure Verifiability
File in questo prodotto:
File Dimensione Formato  
Melloni,Stacchezzini,Lai JMG.pdf

non disponibili

Tipologia: Versione dell'editore
Licenza: Accesso ristretto
Dimensione 530.71 kB
Formato Adobe PDF
530.71 kB Adobe PDF   Visualizza/Apri   Richiedi una copia

I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.

Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11562/929648
Citazioni
  • ???jsp.display-item.citation.pmc??? ND
  • Scopus 67
  • ???jsp.display-item.citation.isi??? 64
social impact