Corporate Annual Reporting: A Mass Communication Perspective

Abstract

Observing the retention of a broad definition of annual report users in statements and discussion documents of professional accounting bodies, this paper identifies the corporate annual report as a mass communication medium. It accordingly investigates mass communication theories and research with a view to advancing both academic accounting research and professional accounting development of the annual report. This perspec- tive enables a critical evaluation of whether the annual report is designed to serve a wide range of potential group user requirements or whether it may simply reflect report producers’ interests and predilections. The paper moves on to consider what further steps may be taken in investigating private shareholder behaviour and preferences with respect to the annual report. Finally this paper outlines presently available means for improving the communicability of the annual report and then elicits key directions for future research into appropriate design and presentation strategies for corporate annual reports.