Mandatory non-financial reporting in the banking industry: assessing reporting quality and determinants
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Mandatory non-financial reporting in the banking industry : assessing reporting quality and determinants. / Schröder, Philipp.
In: Cogent Business and Management, Vol. 9, No. 1, 2073628, 18.05.2022.Research output: Journal contributions › Journal articles › Research › peer-review
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TY - JOUR
T1 - Mandatory non-financial reporting in the banking industry
T2 - assessing reporting quality and determinants
AU - Schröder, Philipp
N1 - Publisher Copyright: © 2022 The Author(s). This open access article is distributed under a Creative Commons Attribution (CC-BY) 4.0 license.
PY - 2022/5/18
Y1 - 2022/5/18
N2 - European companies that are larger than a specific size have had to comply with reporting requirements on non-financial topics since 2017 under the European Union's Non-Financial Reporting Directive (2014/95/EU), thereby making non-financial reporting (NFR) mandatory. To the best of the author's knowledge, no study has examined the quality of non-financial reporting in banks' compulsory reports over several years. Therefore, the unique objective of this study is to assess the non-financial reporting quality (NFRQ) in the mandatory NFR of the 100 largest banks operating in Germany over three years, and identify reporting-level determinants (experience, format, framework, and audit) that impact NFRQ. A novel framework is developed to measure NFRQ, and different statistical analyses are used to test hypotheses. This study provides notable results: (1) NFRQ in banks' mandatory reporting is below average despite displaying significant positive development over the years; and (2) banks' NFRQ is significantly impacted by three reporting-level determinants (experience, format, and framework). Additionally, this study highlights meaningful implications for theory, practice, and policy on the future of mandatory NFR in the EU.
AB - European companies that are larger than a specific size have had to comply with reporting requirements on non-financial topics since 2017 under the European Union's Non-Financial Reporting Directive (2014/95/EU), thereby making non-financial reporting (NFR) mandatory. To the best of the author's knowledge, no study has examined the quality of non-financial reporting in banks' compulsory reports over several years. Therefore, the unique objective of this study is to assess the non-financial reporting quality (NFRQ) in the mandatory NFR of the 100 largest banks operating in Germany over three years, and identify reporting-level determinants (experience, format, framework, and audit) that impact NFRQ. A novel framework is developed to measure NFRQ, and different statistical analyses are used to test hypotheses. This study provides notable results: (1) NFRQ in banks' mandatory reporting is below average despite displaying significant positive development over the years; and (2) banks' NFRQ is significantly impacted by three reporting-level determinants (experience, format, and framework). Additionally, this study highlights meaningful implications for theory, practice, and policy on the future of mandatory NFR in the EU.
KW - Management studies
KW - Banking
KW - Accounting
KW - CSR
KW - banks
KW - directive 2014/95/EU
KW - Germany
KW - mandatory
KW - Non-financial reporting
KW - reporting quality
UR - https://www.mendeley.com/catalogue/03474591-510a-3b05-8256-2327ba4bb3b1/
UR - https://www.tandfonline.com/toc/oabm20/current
UR - http://www.scopus.com/inward/record.url?scp=85130612020&partnerID=8YFLogxK
U2 - 10.1080/23311975.2022.2073628
DO - 10.1080/23311975.2022.2073628
M3 - Journal articles
VL - 9
JO - Cogent Business and Management
JF - Cogent Business and Management
SN - 2331-1975
IS - 1
M1 - 2073628
ER -