The information gap in annual reports
Accounting, Auditing & Accountability Journal
ISSN: 0951-3574
Article publication date: 1 October 2002
Abstract
Following radical restructuring of the electricity industry in New Zealand since 1987, the government adopted a “light‐handed” regulatory regime that used market‐based methods involving competition and transparent accountability. This accountability is in part discharged through the provision of information in the corporate annual report. To assess the quality of that communication, a disclosure index was developed and applied to the annual reports of the 33 electricity retail and distribution companies which comprise the entire industry in New Zealand. The index was developed using the ideas and opinions of 15 experts representing broad stakeholder groups. This paper compares the resulting scores for the extent and quality of each index item with the level of importance of those items as stated by the panel. Many items are not adequately disclosed, resulting in an information gap between stakeholders’ expectations and the disclosures provided by the electricity companies. This paper identifies the items and the detail about them needed to close that gap.
Keywords
Citation
Hooks, J., Coy, D. and Davey, H. (2002), "The information gap in annual reports", Accounting, Auditing & Accountability Journal, Vol. 15 No. 4, pp. 501-522. https://doi.org/10.1108/09513570210440577
Publisher
:MCB UP Ltd
Copyright © 2002, MCB UP Limited