ISSN 2167-0439
International Journal of Management and Business Studies ISSN 2167-0439 Vol. 6 (3), pp. 251-255, March, 2016. © International Scholars Journals
Review
Analytical study on the importance of non-financial information in company reporting
Reza Malek-Yonan1, Mahmoud Bakhtiar2* and Milad Rafsanjani3
1Management Department, Imam Reza University, Daneshgah Street, Asrar Avenue, Mashhad, Khorasan Razavi, Iran. 2Faculty of Economics and Business Administration, Ferdowsi University of Mashhad (FUM), Iran. 3Department of Accounting, Mashhad Branch, Islamic Azad University of Mashhad, Mashhad, Iran.
E-mail: [email protected]
Accepted 27 February, 2016
Abstract
There is an increasing trend for businesses to produce information on social, environmental and sustainable aspects of their operations. Although guidelines exist for the production of such reporting, and legal requirements can be found in some countries, their use is often optional and the disclosure of non-financial information is mandatory only in limited cases. Companies may find it in their interest to disclose voluntarily certain non-financial information, particularly if it is designed as part of a package to improve their credibility and acceptance in key markets, or if it enables them to undertake business more successfully. In sectors dominated by large multinational enterprises, disclosure of such information may be seen as an important business driver. This paper is an analytical study that examines whether the use of non-financial information is important in company reporting.
Key words: Non-financial measures, reporting quality, optional disclosures.