Focus on Business Practices: Corporate Financial Reporting
Organizations today rely on effective communication strategies to maintain their reputations by satisfying the information demands of increasingly skeptical shareholders and vigilant regulators. One aspect of a company’s communication strategy is its financial reporting: informing stakeholders about a company’s economic performance using more standardized, easy-to-dissect formats and language. Although these reporting requirements have been decried as onerous by some, they allow for more accurate communication and easier comparison among companies. Yet despite the move to greater transparency, there is still the notion that corporations use their reports, particularly the annual report, as glossy, image-shaping communication tools, while hiding the substance of their performance (Turner, 2005).
Muir, Clive, "Focus on Business Practices: Corporate Financial Reporting" (2007). Faculty Publications. Paper 24.