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Mandatory vs voluntary exercise on non-financial reporting: does a normative/coercive isomorphism facilitate an increase in quality?

Carungu, J., Di Pietra, R., Molinari, M. (2021) Mandatory vs voluntary exercise on non-financial reporting: does a normative/coercive isomorphism facilitate an increase in quality? Meditari Accountancy Research, 29 (3). pp. 449-476. ISSN 2049-372X. (doi:10.1108/MEDAR-08-2019-0540) (The full text of this publication is not currently available from this repository. You may be able to access a copy if URLs are provided) (KAR id:90502)

The full text of this publication is not currently available from this repository. You may be able to access a copy if URLs are provided. (Contact us about this Publication)
Official URL
http://dx.doi.org/10.1108/MEDAR-08-2019-0540

Abstract

Purpose: This paper aims at investigating the quality of non-financial reporting (NFR) in light of Directive no. 2014/95/EU. Specifically, it focuses on the quality of NFR in Italian companies, as required by Legislative Decree no. 254/2016. Design/methodology/approach: The method used to develop the analysis is mainly qualitative. A content analysis of 184 non-financial reports (NFRs) was conducted on a sample of 92 companies that have been previously involved in the process of NFR on a voluntary basis. Then, a longitudinal analysis was carried out to assess the quality of the NFR conducted from a voluntary to a mandatory basis. Findings: This study shows that the quality of NFR does not increase when moving from a voluntary to a mandatory basis, especially for 25 of the companies that publish supplementary sustainability reports and/or plans. This result demonstrates that preparers may perceive mandatory NFR as a comprehensive best practice to adequately report their social, economic and environmental performance. Originality/value: The contribution of this research is threefold. Firstly, it contributes to the social and environmental accounting literature that focuses on NFR quality assessment. Secondly, it contributes to the literature that emphasizes the role of mimetic, coercive and normative isomorphism mechanisms on accounting systems and reporting practices. Thirdly, it contributes to the research gaps for academics highlighted by previous literature on mandatory corporate reporting as a consequence of normative requirements and on the relationship between regulation and mimetic, coercive and normative isomorphic mechanisms within organizations. © 2020, Emerald Publishing Limited.

Item Type: Article
DOI/Identification number: 10.1108/MEDAR-08-2019-0540
Uncontrolled keywords: Corporate Reporting; Social and environmental accounting; Institutional isomorphism; Non-financial report
Subjects: H Social Sciences
Divisions: Divisions > Kent Business School - Division > Department of Accounting and Finance
Depositing User: Matteo Molinari
Date Deposited: 04 Oct 2021 10:22 UTC
Last Modified: 20 Oct 2021 14:00 UTC
Resource URI: https://kar.kent.ac.uk/id/eprint/90502 (The current URI for this page, for reference purposes)
Molinari, M.: https://orcid.org/0000-0003-3851-4974
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