Is weak corporate governance is the motivation for using impression management strategies in Intellectual Capital disclosures in Integrated Reporting
Keywords:
Impression Management, intellectual capital, corporate governanceAbstract
The need for latest and authentic information regarding the performance of the corporates is increasing day by day. This not only has opened the new horizons of information presentation but also facilitated the users in making investment decisions in a well manner. Users are interested in obtaining the financial and non-financial information of corporate performance to assess the security and outcome of their investment. The annual financial reports were fulfilling the need for presenting the quantitative data and sustainability report put light on the qualitative information as well but no report was ever remained in practice which gave a holistic view of the organizations. The evolution of integrated reporting is with the objective of presenting a holistic picture of the organization’s value creation process by transformation of capitals. The framework consists of guiding principles and the contents have been developed by the IIRC in the light of which the organizations are preparing the integrated reports but it is still questionable whether the information presented in the integrated reports free from psychological biases i.e. different impression management techniques which are used by the firms to improve image, reputation and legitimacy. Recent study has investigated the thematic manipulation with regard to the intellectual capital disclosures in business model section of IR but no study has done to investigate the presence of Emphasis strategy. The study investigates the presence of impression management strategy i.e. positive tone and its motivation by weak corporate governance mechanism with regard to Intellectual capital disclosures of Integrated reporting
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