Abstract
PurposeThe paper aims to examine if corporate characteristics, general contextual factors and the internal context differentiate the quality and quantity of the disclosed non-financial Key Performance Indicators (KPIs).Design/methodology/approachThe study is based on content analysis of the disclosures provided by large public interest entities operating in Poland after the introduction of the Directive 2014/95/EU. The quality of the KPIs disclosures is measured with the disclosure index. Regression analysis and selected statistical tests are used to examine the influence of the selected factors on the differences in the index value and corporate disclosure choices as regards the KPIs.FindingsThe study findings indicate that the sample companies provide a variety of non-financial KPIs in a manner that makes their effective comparison difficult. The research confirms that mainly industry, ecologists and the reporting standard determine the significant differences in the quality of the KPIs disclosures and the quantity of presented KPIs.Research limitations/implicationsThe paper adds to the understanding of the differences in the quality of KPIs presentation and the choice of disclosed KPIs.Practical implicationsThe paper includes suggestions on how to change corporate practice with regard to the non-financial KPIs disclosures.Originality/valueWe shed additional light on the importance of internal contextual factors such as the reporting standard and the reporters' experience in providing non-financial KPIs disclosures.
Highlights
The Directive 2014/95/EU (EU, 2014) was introduced in the European Union (EU) to increase “the relevance, consistency, and comparability of information disclosed by certain large undertakings and groups across the Union” (EU, 2014, Introduction par. 21; Venturelli et al, 2020) in response to external pressures, mostly from investors, a network of non-governmental organizations and trade unions (Monciardini, 2016)
0.559 0.481 0.465 0.464 0.427 0.413 0.392 0.378 results of estimation of the linear regression are presented in Table 4, showing positive and significant effect of pressure from ecologists and standard used on the quality index of Key Performance Indicators (KPIs) disclosures
The positive sign of the coefficient shows that only ecologist (INVOI) and the standard used (STD) positively affect the quality of KPI disclosures (INDEX)
Summary
The Directive 2014/95/EU (EU, 2014) was introduced in the European Union (EU) to increase “the relevance, consistency, and comparability of information disclosed by certain large undertakings and groups across the Union” (EU, 2014, Introduction par. 21; Venturelli et al, 2020) in response to external pressures, mostly from investors, a network of non-governmental organizations and trade unions (Monciardini, 2016). 21; Venturelli et al, 2020) in response to external pressures, mostly from investors, a network of non-governmental organizations and trade unions (Monciardini, 2016). The Directive 2014/95/EU (EU, 2014) was introduced in the European Union (EU) to increase “the relevance, consistency, and comparability of information disclosed by certain large undertakings and groups across the Union” It seems that by choosing the significantly cheaper minimum harmonization approach, not supported by. The full terms of this licence may be seen at http://creativecommons.org/licences/by/4.0/legalcode
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