Empirical research on the nature of narrative reporting has focused on impression management as an explanation for the style and content of narrative reports. Companies may offer voluntary disclosures to offset the potential for adverse selection caused by lack of disclosure particularly where the market is aware of the existence of bad news. Theoretical models have been developed to demonstrate that the relative extent of corporate disclosure may be related to information costs. This paper links these theoretical perspectives by showing that factors representing the management need, or desire, for corporate visibility are significantly associated with the extent of voluntary ...
The s havewitnessed growth in, green consumerism, green ethical investment trustsand general environmental concerns that have lead to specific changesin business practice and its environment and it can be expected thatthese changes will affect the accounting profession , p. . The Institute of Chartered Accountants in England and Wales ,p. points out that â?? where environmental factors will impact on acompanyâ??s policy and activities, and will impose costs on the company,or affect its asset values or liabilities, actual or contingent, thefinancial consequences need to be accounted for or reported inaccordance with existing accounting requirementsâ?.In the past,consumers have demanded ...
and purposeMultinationalCorporations MNCs based in the United States typically have a numberof subsidiaries in various foreign countries. It is not uncommon forthe consolidated entity to have more sales outside the United Statesthan domestically, and the various subsidiaries often operate withlittle interference from the parent company management. A substantialportion of many foreign subsidiariesâ?? financing, investing, andmarketing activities is done in the foreign environment.Butaccording to generally accepted accounting principles GAAP in theUnited States, MNCs which own more than % of the voting stock offoreign corporations are required to prepare consolidated financialstatements. There are two exceptions to this requirement: whencontrol is ...