Abstract
Insurance companies are institutions of public trust, and this affects their corporate culture, strategies and management systems. One of the image concerns is reporting on socially responsible actions in non-financial reports. The prime objective of the research presented in this paper is to analyze the dependence between the level of non-financial reporting in the insurance market and the share of foreign capital, measured based on the market size of foreign insurance companies compared to all insurance companies, and the share of foreign insurance companies in non-financial reporting. The study concerned insurance markets in the Czech Republic, Hungary, Poland and Slovakia, and the overall market of the Visegrad Group countries. The theoretical section provides a review of the literature and applicable legislation to indicate the causes of non-financial reporting by insurance companies. Next, the correlation was used to determine the relationship between the variables studied, the regression method was applied to determine the impact of the variables studied, in particular foreign capital, on the level of non-financial reporting. A model was constructed, and the results of its estimation were analyzed. Analysis of the data demonstrated that the greater the share of foreign capital, the higher the level of non-financial reporting. The study results indicate that the share of foreign insurance companies can become a determinant in the development of non-financial reporting.
Highlights
The development of non-financial reporting stems from the growing social awareness and public interest in the ethical aspects of business
El of non-financial reporting in the insurance market and the share of foreign capital, meas- Yearlong data, published by OECD (2008, 2011, ured based on the size of foreign insurance com- 2015, 2016, 2017), covering the insurance marpanies compared to all insurance companies kets of Visegrad Group countries, starting the and the share of foreign insurance companies in year 2000 and ending the year 2016, have been non-financial reporting, is a research problem. used
This study aimed to find out whether foreign capital has a positive effect on the advancement of non-financial reporting in the Visegrad Group countries, as, to the authors’ knowledge, such a study has not yet been conducted
Summary
The development of non-financial reporting stems from the growing social awareness and public interest in the ethical aspects of business. The directive represents an effort by the European Council to enhance transparency on business matters, such as social and environmental and others connected to corporate responsibility, which means that CSR reporting is becoming mandatory for some companies. Research into non-financial reporting by insurance companies shows it is not universal This is caused by non-obligatory status and differences in management systems. The reporting in Western (2015 – 79%) and Eastern European (2015 – 61%) countries is clearly disproportionate This may be due to differences in corporate management systems and shareholdings of foreign investors that transfer their experience of non-financial reporting. It can be said that, if insurance market advancement is set by foreign investment, it can be deduced that it conduces non-financial reporting progression
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