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Research question: What are the effects of non-financial reporting (NFR) for companies and stakeholders? Motivation: We draw on previous research that examines the effects and limitations of the Non-Financial Reporting Directive on key stakeholders. Idea: This article investigates the increasing significance of the sustainability orientation in corporate operations, as well as the role of NFR in providing information about social, ethical, and environmental aspects of a particular organization. Additionally, the article explores the possible benefits of sustainability reporting, such as improved reputation, in addition to the company’s ability to contribute to the sustainable development goals. Data and tools: This paper provides a scoping review that explores the influence of NFR on the decisions of various stakeholders, such as companies, investors, governments or regulators, accountants and auditors, employees, and the general public. The review discusses existing studies in the literature focusing on NFR and the legislative context in respect to the transition from NFR to sustainability reporting. Findings and Contribution: This article shows that Directive 2014/95/EU positively influenced the quality and transparency of the sustainability disclosure process of companies. Also, we identify various gaps in the literature, along with challenges faced by firms when reporting on non-financial information and ensuring accuracy and completeness. Based on summarized evidence from the literature, the limitations of NFR include inconsistent formats, lack of standardization, weaknesses in the reliability and comparability of information used in decision-making process, and limited assurance. Finally, our study highlights the importance of transitioning from NFR to sustainability reporting, the latter having significant effects in increasing stakeholder participation, safeguarding business reputation, boosting investor confidence and achieving the sustainable development goals, while complying with legislation. It explores the challenges and opportunities linked to NFR (a synonym of ESG reporting) and specifies the necessary components of sustainability reporting frameworks.

The Markets in Crypto-Assets (MiCa) Regulation of the European Union is the first comprehensive piece of legislation that seeks to protect the interests of investors in the crypto-assets sector. Although the market value of crypto-assets is significant at world level, there is a lack of clear regulatory guidelines regarding the recognition, measurement, and presentation of crypto-assets in the financial statements of investors. Considering that not all digital assets are the same, retail holders need to take into account the characteristics, rights, and obligations associated with the crypto-assets they purchase to determine the appropriate accounting method. Therefore, the research question of the present article is: Which are the main types of crypto-assets and how should they be recognized and measured in the financial statements of investors and holders? We perform a review of the accounting policies and options, relying on relevant regulations, standards, regulatory drafts, legal and academic papers, recommendations of market regulators, crypto-asset white papers, industry opinions, and media articles. There are different accounting treatments that can be applied, depending on the legal and technological aspects of each class of crypto-assets. Based on a critical discussion of accounting policies and options, our research has implications for accounting professionals, but also for standard setters, who are urged to provide clear guidelines. Identifying the key economic characteristics of each asset and determining the most appropriate way to recognize these characteristics in the financial statements are crucial for the development of a functional and trustworthy market in crypto-assets.

The purpose of this study is to investigate the differences between developed countries in terms of corporate governance outcomes at aggregate and granular levels. The population of companies was collected from the database curated by Refinitiv. The sample was selected according to two criteria: the existence of governance scores for the financial year 2021 and the registration of a company in any of the G20 countries or the European Union. The results are presented by ranking the G20 countries based on four aggregate indicators and four granular indicators of corporate governance quality. While the differences regarding the aggregate indicators are not statistically strong, the intercountry differences on board independence, board gender diversity, board skills, and auditor tenure are especially relevant. The present article opens an avenue of research on international corporate governance linked to cultural dimensions, comparative legal systems, national approach to corporate social responsibility, and corporate governance principles.

The aim of the present study is to assess the impact of structural capital intensity and utilization on firm profitability in an international setting: the European Union countries, plus Norway, Switzerland and the United Kingdom. The indicators are calculated based on financial data downloaded from the Refinitiv Eikon database. Two financial ratios are used as proxies for the intensity and utilization of structural capital. The balanced panel consists of 625 companies from 25 countries, over the period from 2013 to 2022. The panel includes financial information on two industries that are considered innovation-oriented, namely technology and healthcare. Alternative model specifications are proposed to test the robustness of the basic model, including dynamic models (with lagged dependent variables). The present study indicates that a higher proportion of structural capital (intangible assets, excluding goodwill) is a negative factor for company profitability in the technology and healthcare sectors. There is no indication that a more intense use of intangible assets and more investments in R&D positively contribute to company profitability in the respective industries, for a large sample of listed companies. A higher proportion of intangible assets, as reported in financial statements, is possibly related to inefficiencies in the management of structural capital. The inverse relationship between profitability and investments in intangible assets is likely due to failures in cost accounting. Limitations and future research propositions are provided in the conclusions.

Climate change mitigation is at the core of the preoccupations of governments worldwide. The main research gap is that little is known about a powerful tool used by corporations to address climate change, namely carbon reduction and energy transition targets. In the official statistics, companies are designated as the biggest polluters. The purpose of this research is to investigate the targets set by the largest European companies and their achievement status regarding the carbon reduction and energy transition process. Target setting was analyzed by reference to the pressures hypothesized by the institutional theory. To answer the research question, the targets set by the companies included in the STOXX All Europe 100 Index were extracted from various sources. Hypothesis testing was conducted on the existence of mimetic, coercive, and normative isomorphism. A new scoring system was proposed to measure the level of corporate commitment regarding carbon reduction and energy transition targets. The findings suggest that most targets are established for the short and medium term and refer to absolute emissions, some of them already achieved. All forms of isomorphism apply to the selected sample. The research has implications for policy setting, as relaxed targets may lead to greenwashing and prevent countries from meeting international strategic goals.

The purpose of this paper is to provide rich empirical evidence on circularity solutions adopted by the largest companies in the fast fashion industry. The sustainability reports of six global players were analyzed using a comprehensive circular model of the value chain. This model comprises eleven stages: product design, virgin raw material extraction and processing, textile and material production, manufacturing, auditing and certification, packaging and retail, customer use, post-consumer garment collection, recycling fibers and materials, partnerships, and transparency. The results are reported on five implementation phases: strategies, research and development, implementation at scale, quantitative indicators, and targets. The analysis shows that major players in this sector created a complex system for reducing their environmental impact while imposing strict rules in their upstream supply chain. Downstream, these companies educate their customers on the topic of circularity and promote recycle-or-reuse consumer habits. In addition to offering practical examples of strategy, product, and process design, the present contribution describes several configurations of circular models as implemented by large fashion retailers. The results have significant implications for theory, management, and standard-setting, considering that fast fashion is widely viewed as having a negative impact on the environment.

There is a growing interest in identifying the benefits that companies may have once they disclose financial and sustainability information in integrated reports. The aim of this study is to analyze the relationship between integrated thinking and reporting (ITR) and financial risk in nonfinancial companies worldwide. Data were collected mainly from the Refinitiv Eikon database for 7111 companies from 85 countries over the period 2017–2021. The focal industries are basic materials, consumer discretionary, consumer staples, energy, healthcare, industrials, real estate, technology, telecommunications, and utilities. Panel regression was used as a statistical procedure and random effects models are preferred. Hypotheses related to signaling theory are confirmed, as companies are interested in high-quality disclosures in integrated reports, reflecting a positive outlook and reduced financial risk. Our results show a negative relationship between ITR and the weighted average cost of capital, and a positive association between the main predictor and liquidity measured by the cash ratio. In addition, designing a compensation system linked to sustainability performance leads to a reduced cost of financing through debt and equity. Robustness tests were applied to the relationship between ITR and the weighted average cost of capital; the results show that stricter board oversight and holistic stakeholder management can decrease the average cost of capital and the financial risk for the company. This research is important for stakeholders looking to improve their knowledge about integrated reports and for practitioners seeking to enhance the quality of integrated reports and reduce the financial risk of companies.

All companies admit in their codes of conduct that conflicts of interest (CIs) are a threat to their efficiency, integrity and reputation. Except for insider trading, definitions of CIs are strictly particular to each business and publicly expressed through their codes of ethics. I propose an interpretative analysis of what is understood by conflict of interest in the codes of ethics of the world’s ten largest companies, along with a comprehensive review of CIs in several sections: employment, contracting, corporate assets, insider trading and personal investments, competitors, and corporate image. The present paper offers solutions to avoid or resolve CIs in a business context, by combining economic preference with the psychological cognitivist view of self-interest. The conclusion is that a code of ethics and relevant training are protective measures for a company wishing to convince its employees that they are better off not entering CIs.

Using a model of inputs-environment-process-outcomes, our focus is the students' point of view on writing the master's thesis in accounting. We analyze the factors that influence the complexity of a thesis and the satisfaction of students with it. We used the answers received on two matched questionnaires distributed during the second semester of the academic year 2021-2022. The results of the path analysis show that planning and involvement in research and university support can increase the effectiveness of students' time management and improve satisfaction with the research outcome. Resource use increases the thesis complexity, too. The paper comprises a couple of implications: first, the quality of the thesis depends to a great extent on the initial planning phase, indicating that university support is crucial during preliminary work; second, university management must ensure the existence of necessary resources, which are a complex mix of supervision, collaboration, guidelines, and scientific sources.

Using a model of inputs–environment–process–outcomes, our focus is the students' point of view on writing the master's thesis in accounting. We analyze the factors that influence the complexity of a thesis and the satisfaction of students with it. We used the answers received on two matched questionnaires distributed during the second semester of the academic year 2021–2022. The results of the path analysis show that planning and involvement in research and university support can increase the effectiveness of students' time management and improve satisfaction with the research outcome. Resource use increases the thesis complexity, too. The paper comprises a couple of implications: first, the quality of the thesis depends to a great extent on the initial planning phase, indicating that university support is crucial during preliminary work; second, university management must ensure the existence of necessary resources, which are a complex mix of supervision, collaboration, guidelines, and scientific sources. [ABSTRACT FROM AUTHOR]

There is a growing interest in identifying the benefits that companies may have once they disclose financial and sustainability information in integrated reports. The aim of this study is to analyze the relationship between integrated thinking and reporting (ITR) and financial risk in nonfinancial companies worldwide. Data were collected mainly from the Refinitiv Eikon database for 7111 companies from 85 countries over the period 2017–2021. The focal industries are basic materials, consumer discretionary, consumer staples, energy, healthcare, industrials, real estate, technology, telecommunications, and utilities. Panel regression was used as a statistical procedure and random effects models are preferred. Hypotheses related to signaling theory are confirmed, as companies are interested in high-quality disclosures in integrated reports, reflecting a positive outlook and reduced financial risk. Our results show a negative relationship between ITR and the weighted average cost of capital, and a positive association between the main predictor and liquidity measured by the cash ratio. In addition, designing a compensation system linked to sustainability performance leads to a reduced cost of financing through debt and equity. Robustness tests were applied to the relationship between ITR and the weighted average cost of capital; the results show that stricter board oversight and holistic stakeholder management can decrease the average cost of capital and the financial risk for the company. This research is important for stakeholders looking to improve their knowledge about integrated reports and for practitioners seeking to enhance the quality of integrated reports and reduce the financial risk of companies. [ABSTRACT FROM AUTHOR]