Abstract
Public companies as strategically important and economically powerful Ukrainian companies should be classified as public interest entities in the context of European integration. Based on the research methodology of the Index of public companies’ transparency of the Center for CSR Development and research of largest public and private companies’ transparency in Ukraine, conducted by TI, the authors concluded about critically low level of transparency of public companies in the disclosure of audited financial reporting, as well as non-financial reporting. This research may contribute to the existing literature in regard to identifying key areas of improving transparency of public companies in Ukraine on the basis of amendments to the existing order of reporting and additional disclosure of non-financial information and carrying out the statutory audit, taking into account European experience. Among the issues that require further study, the authors should name the relationship between the level of transparency of public companies, their financial efficiency and investment attractiveness. Among the promising areas of research, the extension of the study on transparency of public interest entities after the publication by the European companies of the first statements prepared in accordance with Directive 2014/95/EU is worth noting. Limitations of the research carried out concerned the size of the sample Ukrainian public companies analyzed.
Highlights
Information transparency is the key component of corporate governance according to the Principles for the corporate governance of the Organization for Economic Cooperation and Development (OECD) and the G20 countries
It is worth noting that public companies as strategically important and economically powerful Ukrainian companies in the context of European integration should be classified as public interest entities (PIEs)
For Ukrainian PIEs, it means the necessity of substantial reform in the system of accounting, reporting and audit of public companies Ukraine to increase their transparency
Summary
Ensuring transparency in corporations’ activity has coverage among regulators and scientists. Information transparency is the key component of corporate governance according to the Principles for the corporate governance of the Organization for Economic Cooperation and Development (OECD) and the G20 countries. Important documents on promoting transparency in corporate reporting are the Objectives and Principles of Securities Regulation (IOSCO) – in the context of financial markets, UNCTAD’s Investment Policy Framework for Sustainable Development (IPFSD) - in the context of promoting sustainable development initiatives. Among the key priorities of the European Organization for Securities and Markets (ESMA) and the Working Group on Financial Reporting (EFRAG) are improving the transparency and comparability of financial information, reducing information asymmetry between users of reporting, ensuring consistency in the application of alternative methods for assessing and restoring public confidence in the statements as a whole. For Ukrainian public companies, it is vitally important to observe these Directives in the light of Association Agreement
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