Social and environmental narrative reporting : analysts' perceptions

An ACCA research report, Narrative Reporting: Analysts' Perceptions of its Value and Relevance was published in November 2008. The research considered analysts' views on five key elements of narrative reporting, including social and environmental disclosures. Due to the significant interests ACCA has in corporate transparency with regards to sustainability, this specific part of the research has been highlighted in this paper. The other parts of the research have been summarised only.Publisher PD

Land and Property Taxation in 25 Countries: A Comparative Review

Steuer, Eigentum, Boden, Grundsteuer, Vergleich, Welt, Tax, Property, Land, Real property tax, Comparison, World

Voluntary disclosure narrative: reporting content, stakeholders, external materiality and usefulness

This PhD by published work comprises 11 papers published between 2006 and 2009. The research is focussed upon voluntary and related financial reporting by UK companies in their annual report. The level, and more importantly, the importance of voluntary disclosure has significantly increased over the last 20 years (Campbell, Moore and Shrives, 2006) and this submission provides academic and policy relevant contributions to that field. The papers make specific contributions to the extant literature in discrete areas primarily; philanthropy, social and environmental reporting. These 11 publications adopt a range of research methods appropriate to different research questions. The qualitative papers demonstrate successful engagement with a number of high level participant stakeholders from the building society sector, fair trade organisations and UK capital markets as well as capturing disclosure content relevant to other stakeholder groups. Other papers have adopted a positivist approach with appropriate longitudinal and cross sectional data used to test theory. Two of the research projects relating to strategic philanthropy and decision–usefulness of disclosure were supported by external research funding and therefore demonstrate the policy relevance and impact of the research contribution in those areas. Within the commentary, the research is presented in two sections, followed by a conclusion which shows the research impact of the publications and the international dissemination of the research contribution and findings. The key findings of Section 1 show the financial and non-financial influences on levels of philanthropy; inconsistency of philanthropy policy reporting; social disclosure responses to legitimacy threats and the reporting validity of the annual report; a holistic approach to responsible business practice and insights into the mainstreaming of Fair Trade. Section 2 provides findings into the decision-usefulness of a range of voluntary disclosure narratives in the annual report, developed in detail in respect of environmental disclosures and related risk factors and insights into the current issues facing accounting

Global investor responses to the International Sustainability Standards Board draft sustainability and climate-change standards: Sites of dissonance or consensus

PurposeThis paper aims to examine sites of dissonance or consensus between global investor responses to the draft standards, International Financial Reporting Standards S1 (IFRS) (General Requirements for Disclosure of Sustainability-related Financial Information) and IFRS S2 (Climate-related Disclosures), issued by the International Sustainability Standards Board (ISSB).Design/methodology/approachA thematic content analysis was used to capture investor views expressed in their comment letters submitted in the consultation period (March to July 2022) in comparison to the ex ante position (issue of draft standards, March 2022) and ex post summary feedback (ISSB staff papers, September 2022) of the ISSB.FindingsThere was investor consensus in support of the ISSB and the development of the draft standards. However, there were sites of dissonance between investors and the ISSB, notably regarding the basis and focus of reporting (double or single/financial materiality and enterprise value); definitional clarity; emissions reporting; and assurance. Incrementally, the research further highlights that investors display heterogeneity of opinion.Practical and Social implicationsThe ISSB standards will provide a framework for future sustainability reporting. This research highlights the significance of such reporting to investors through their responses to the draft standards. The findings reveal sites of dissonance in the development and alignment of draft standards to user needs. The views of investors, as primary users, should help inform the development of sustainability-related standards by a global standard-setting body apposite to current policy and future reporting requirements, and their usefulness to users in practice.Originality/valueTo the best of the authors’ knowledge, this paper makes an original contribution to the comment letter literature, hitherto focused on financial reporting with a relative lack of investor engagement. Using thematic analysis, sites of dissonance are examined between the views of investors and the ISSB on their development of sustainability reporting standards

Does Municipal Amalgamation Strengthen the Financial Viability of Local Government? A Canadian Example

Municipal amalgamation is often seen as one way to ensure that municipalities are large enough to be financially and technically capable of providing the extensive array of services with which they are charged. The idea is presumably that municipalities will be able not only to reap economies of scale, but also to coordinate service delivery over the enlarged territory as well as share costs equitably and reduce (even eliminate) spillovers of service delivery across local boundaries. This paper evaluates the extent to which municipal amalgamation in Toronto, Canada’s largest city, in 1998 achieved the provincially-stated objective of saving costs as well as its impact on taxes, financial viability, and local access and responsiveness. We conclude that the end result was the creation of a city that manages to be both too small and too big at the same time. The amalgamation probably increased the financial viability of at least the smaller and poorer municipalities in the newly created City of Toronto by increasing their access to the tax base of the amalgamated city as a whole and it also equalized local services so that everyone can enjoy a similar level of services. However, it had no significant effect on either the financial sustainability of Toronto or its capacity to deal with financial crises, nor did it achieve cost savings or solve any of the problems that the city and region faced in the last decade and continue to face in this one. The new city remains much too small to address the regional issues that plague the greater Toronto region (such as transportation and land use planning and economic development) while resulting in resulted in reduced access and participation by residents in local decision-making. On balance, it seems unlikely that anyone looking back with knowledge of the small and questionable gains that appear to have been realized would willingly have undertaken the complex, extended and painful process of metropolitan amalgamation

Disclosure quality and stock returns in the UK

The purpose of this paper is to update and re-examine the role of corporate narrative reporting in improving investors’ ability to better forecast future earnings change. We also construct a risk factor for disclosure quality (DQ) and test whether such a factor is useful in explaining the time-series variation of UK stock returns. Our paper contributes to the market based accounting research in three crucial ways. Firstly, it offers updated evidence on the usefulness of corporate narrative reporting to investors. Secondly, it offers evidence that the DQ factor is a significant risk factor in the UK. Thirdly, and finally, it finds that the Fama-French factors might contain DQ related information

Quaker accountability regimes: The case of the Richardson family networks, 1840 - 1914

Purpose – This paper aims to explore the development of the accountability ideals and practices of Quaker industrialists during the period 1840 – 1914. Design/methodology/approach – The research employs a case study approach and draws on the extensive archives of Quaker industrialists in the Richardson family networks, British Parliamentary Papers and the Religious Society of Friends together with relevant contemporary and current literature. Findings – Friends shed their position as Enemies of the State and obtained status and accountabilities undifferentiated from those of non-Quakers. The reciprocal influences of an increasingly complex business environment and radical changes in religious beliefs and practices combined to shift accountabilities from the Quaker Meeting House to newly established legal accountability mechanisms. Static Quaker organization structures and accountability processes were ineffective in a rapidly changing world. Decision-making was susceptible to the domination of the large Richardson family networks in the Newcastle Meeting House. This research found no evidence of Quaker corporate social accountability through action in the Richardson family networks and it questions the validity of this concept. The motivations underlying Quakers’ personal philanthropy and social activism were multiple and complex, extending far beyond accountabilities driven by religious belief. Originality/value –This research has originality and value as a study of continuity and change in Quaker accountability regimes during a period that encompassed fundamental changes in Quakerism and its orthopraxy, and their business, social and political environments