Financial accounting theory chapter8无管制财务报告决策-理论导向下的制度问题.ppt

FinancialAccountingTheoryCraigDeegan Chapter8Unregulatedfinancialreportingdecisions ConsiderationsofsystemsorientedtheoriesSlideswrittenbyMichaelaRankin Copyright 2000McGraw HillBookCo Aust PPTt aFinancialAccountingTheorybyDeegan 8 2 LearningObjectives Inthischapteryouwillbeintroducedtohowcommunityorstakeholders perceptionscaninfluencethedisclosurepoliciesofanorganisationhowLegitimacyTheoryandStakeholderTheorycanbeappliedtohelpexplainwhyanentitymightelecttomakeparticularvoluntarydisclosures Copyright 2000McGraw HillBookCo Aust PPTt aFinancialAccountingTheorybyDeegan 8 3 LearningObjectives organisationallegitimacyandhowcorporatedisclosureswithinsuchplacesasannualreportscanbeusedasastrategytomaintainorrestorethelegitimacyofanorganisationhowtherespectivepowerandinformationdemandsofparticularstakeholdergroupscaninfluencecorporatedisclosurepoliciestheviewthatasuccessfulorganisationisonethatisabletobalanceormanagethedemands includinginformationdemands ofdifferentstakeholdergroups Copyright 2000McGraw HillBookCo Aust PPTt aFinancialAccountingTheorybyDeegan 8 4 Systems orientedtheories LegitimacyandStakeholdertheoriesarebothsystems basedtheoriesfocusontheroleofinformationanddisclosureintherelationshipsbetweenorganisations theState individualsandgroupstheentityisinfluencedby andinfluencesthesocietyinwhichitoperates Copyright 2000McGraw HillBookCo Aust PPTt aFinancialAccountingTheorybyDeegan 8 5 PoliticalEconomyTheory LegitimacyTheoryandStakeholderTheoryderivedfromPoliticalEconomytheorypoliticaleconomy isthesocial politicalandeconomicframeworkwithinwhichhumanlifetakesplace economicissuescannotbeinvestigatedintheabsenceofconsideringthepolitical socialandinstitutionalframeworkwithinwhicheconomicactivitytakesplace Copyright 2000McGraw HillBookCo Aust PPTt aFinancialAccountingTheorybyDeegan 8 6 PoliticalEconomyTheory continued Corporatereportsnotconsideredneutralandunbiased butareaproductoftheinterchangebetweenthecorporationanditsenvironmentTwostreamsofPoliticalEconomytheory classicalbourgeois Copyright 2000McGraw HillBookCo Aust PPTt aFinancialAccountingTheorybyDeegan 8 7 ClassicalPoliticalEconomyTheory RelatedtotheworksofMarxconsidersclassinterests structuralconflict inequityandtheroleofthestateaccountingreportsanddisclosuresareameansofmaintainingthefavouredpositionofthosewhocontrolscarceresourcesfocusesonthestructuralconflictswithinsociety Copyright 2000McGraw HillBookCo Aust PPTt aFinancialAccountingTheorybyDeegan 8 8 BourgeoisPoliticalEconomyTheory DoesnotexplicitlyconsiderstructuralconflictsandclassstrugglesconcernedwithinteractionsbetweengroupsinanessentiallypluralisticworldLegitimacyTheoryandStakeholderTheoryderivefromthisbranchdoesnotquestionorstudythevariousclassstructureswithinsociety Copyright 2000McGraw HillBookCo Aust PPTt aFinancialAccountingTheorybyDeegan 8 9 LegitimacyTheory Organisationsseektoensuretheyoperatewithintheboundsandnormsoftheirrespectivesocietiesactivitiesareperceivedtobe legitimate boundsandnormsnotstaticsorequireorganisationtoberesponsivereliesuponthenotionofa socialcontract Copyright 2000McGraw HillBookCo Aust PPTt aFinancialAccountingTheorybyDeegan 8 10 Legitimacyversuslegitimation Legitimacyisthestatusorconditionwhichexistswhenanentity svaluesystemiscongruentwiththatofsocietylegitimationistheprocesswhichleadstoanorganisationbeingviewedaslegitimate Copyright 2000McGraw HillBookCo Aust PPTt aFinancialAccountingTheorybyDeegan 8 11 Socialcontract Representstheimplicitandexplicitexpectationsthatsocietyhasabouthowtheorganisationshouldconductitsoperationstraditionallytheoptimalmeasureofperformancewasprofitmaximisationpublicexpectationshavechangedsoorganisationsarenowrequiredtoaddresshuman environmentalandothersocialissues Copyright 2000McGraw HillBookCo Aust PPTt aFinancialAccountingTheorybyDeegan 8 12 Implicationsofnotmeetingsocialcontract Societyallowstheorganisationtocontinueoperationstotheextentthatitmeetstheirexpectationstheorganisationmayfinditdifficulttoobtainthenecessarysupportandresourcestocontinueoperationsmayleadtosanctionssuchaslegalrestrictionsonoperations limitedresourcesprovided orreduceddemandforproducts Copyright 2000McGraw HillBookCo Aust PPTt aFinancialAccountingTheorybyDeegan 8 13 Actionstolegitimateactivities Adaptoutput goalsandmethodsofoperationtoconformtodefinitionsoflegitimacyattempt throughcommunication toalterthedefinitionofsociallegitimacysoitconformswiththeorganisation spresentpractices outputandvaluesattempt throughcommunication tobecomeidentifiedwithsymbolsorvalueswhichimplylegitimacy Copyright 2000McGraw HillBookCo Aust PPTt aFinancialAccountingTheorybyDeegan 8 14 Communicationtomaintainlegitimacy Seektoeducateandinformthecommunityaboutchangesinperformanceandactivitiesseektochangeperceptionsbutnotbehaviourseektomanipulateperceptionbydeflectingattentionfromtheissuetootherrelatedissuesseektochangeexternalexpectations Copyright 2000McGraw HillBookCo Aust PPTt aFinancialAccountingTheorybyDeegan 8 15 Roleofpublicdisclosure Publicdisclosureinsuchplacesasannualreportscanbeusedtoimplementeachofthepreviousstrategiesperspectiveadoptedbymanyresearchersofsocialresponsibilityreportinghighlightsthestrategicnatureoffinancialstatementsandotherrelateddisclosures Copyright 2000McGraw HillBookCo Aust PPTt aFinancialAccountingTheorybyDeegan 8 16 EmpiricaltestsofLegitimacyTheory Usedbynumerousresearchersexaminingsocialandenvironmentalreportingpracticesusedtoattempttoexplaindisclosuresdisclosuresformpartoftheportfolioofstrategiesundertakentobringlegitimacytoormaintainlegitimacyoftheorganisation Copyright 2000McGraw HillBookCo Aust PPTt aFinancialAccountingTheorybyDeegan 8 17 Examplesofempiricalstudies Patten 1992 examinedthechangeintheextentofenvironmentaldisclosuresofUSoilfirmsaroundtheExxonValdezoilspillinAlaskalegitimacytheorysuggestedthattheywouldincreasedisclosureintheannualreportafterthespillfoundtheincreaseindisclosureoccurredacrosstheindustry Copyright 2000McGraw HillBookCo Aust PPTt aFinancialAccountingTheorybyDeegan 8 18 Examplesofempiricalstudies continued DeeganandRankin 1996 usedLegitimacyTheorytoexplainchangesinannualreportenvironmentaldisclosurepoliciesaroundprovenenvironmentalprosecutionsprosecutedfirmsdisclosedsignificantlymoreenvironmentalinformationintheyearofprosecutionthananyotheryearprosecutedfirmsdisclosedmoreinformationthannon prosecutedfirms Copyright 2000McGraw HillBookCo Aust PPTt aFinancialAccountingTheorybyDeegan 8 19 Examplesofempiricalstudies continued DeeganandGordon 1996 investigatedtheobjectivityofenvironmentaldisclosurepracticesandtrendsovertime aswellaswhetherenvironmentaldisclosuresrelatedtoenvironmentalgroupconcernsfoundincreaseddisclosureovertimeassociatedwithincreasedenvironmentalgroupmembershipdisclosuresmostlypositivepositiverelationbetweenenvironmentalsensitivityofindustryanddisclosure Copyright 2000McGraw HillBookCo Aust PPTt aFinancialAccountingTheorybyDeegan 8 20 Examplesofempiricalstudies continued Gray KouhyandLavers 1995 performedlongitudinalstudyofUKsocialandenvironmentaldisclosuresfrom1979 1991relatedtrendstoLegitimacyTheory withspecificreferencetoLindblom sstrategies Copyright 2000McGraw HillBookCo Aust PPTt aFinancialAccountingTheorybyDeegan 8 21 Examplesofempiricalstudies continued Deegan RankinandVoght 2000 usedLegitimacyTheorytoexplainhowsocialdisclosuresinannualreportschangedaroundthetimeofmajorsocialincidentsordisastersCarpenterandFeroz 1992 aUSstudyonthechoiceofanaccountingframeworkrelatedtoadesiretoincreasethelegitimacyofanorganisation Copyright 2000McGraw HillBookCo Aust PPTt aFinancialAccountingTheorybyDeegan 8 22 Howmanagementdeterminessociety sexpectations LegitimacyTheoryproposesarelationshipbetweencorporatedisclosureandcommunityexpectationsmanagementhasbeenfoundtorelyonthemedia withthemediabeingobservedtoshapecommunityexpectations O Donovan1999 Copyright 2000McGraw HillBookCo Aust PPTt aFinancialAccountingTheorybyDeegan 8 23 LegitimacyTheoryversusPositiveAccountingTheory LegitimacyTheoryhasbeencomparedtothePoliticalCostHypothesisofPATLegitimacyTheoryreliesonthenotionofa socialcontract itdoesnotrelyontheeconomics basedassumptionthatallactionisdrivenbyself interestandwealthmaximisationormakeassumptionsabouttheefficiencyofmarkets Copyright 2000McGraw HillBookCo Aust PPTt aFinancialAccountingTheorybyDeegan 8 24 StakeholderTheory TwobranchesofStakeholderTheory ethical moral ornormativebranchpositive managerial branchmanysimilaritiesbetweenLegitimacyTheoryandStakeholderTheoryshouldnotbetreatedastwoseparatetheoriesbuttwo overlapping perspectivesoftheissuesetwithina politicaleconomy framework Copyright 2000McGraw HillBookCo Aust PPTt aFinancialAccountingTheorybyDeegan 8 25 EthicalbranchofStakeholderTheory Allstakeholdershavetherighttobetreatedfairlybyanorganisationissuesofstakeholderpowerarenotdirectlyrelevantmanagementshouldmanagetheorganisationforthebenefitofallstakeholders Copyright 2000McGraw HillBookCo Aust PPTt aFinancialAccountingTheorybyDeegan 8 26 EthicalbranchofStakeholderTheory continued firmisavehicleforcoordinatingstakeholderinterestsmanagementhaveafiduciaryrelationshiptoallstakeholderswhereinterestsconflict businessmanagedtoattainoptimalbalanceamongthemeachgroupmeritsconsiderationinitsownrightalsohavearighttobeprovidedwithinformation evenifnotused Copyright 2000McGraw HillBookCo Aust PPTt aFinancialAccountingTheorybyDeegan 8 27 Definitionofstakeholders Anyidentifiablegrouporindividualwhocanaffecttheachievementofanorganisation sobjectives orisaffectedbytheachievementofanorganisation sobjectives FreemanandReed1983 Copyright 2000McGraw HillBookCo Aust PPTt aFinancialAccountingTheorybyDeegan 8 28 Primaryversussecondarystakeholders Primarystakeholders onewithoutwhosecontinuingparticipationthecorporationcannotsurviveasagoingconcernSecondarystakeholders thosewhoinfluenceoraffect orareinfluencedoraffectedby thecorporation buttheyarenotengagedintransactionswiththecorporationandarenotessentialforitssurvivalethicalbranchdoesnotdifferentiatebetweenprimaryandsecondarystakeholders Copyright 2000McGraw HillBookCo Aust PPTt aFinancialAccountingTheorybyDeegan 8 29 Righttoinformation accountability Inconsideringrightstoinformationaccountabilityisconsidered thedutytoprovideanaccountorreckoningofthoseactionsforwhichoneisheldresponsibleaccountabilityinvolvestworesponsibilities toundertakecertainactionstoprovideanaccountofthoseactionsreportingisassumedtobearesponsibilityratherthandemanddriven Copyright 2000McGraw HillBookCo Aust PPTt aFinancialAccountingTheorybyDeegan 8 30 Testingofethicalbranchoftheory Asinvolvesnormativeperspectivesabouthowtheorganisationshouldact theycannotbevalidatedbyempiricalobservationnormativetheoryattemptstointerpretthefunctionof orprovideguidanceabout thecorporation Copyright 2000McGraw HillBookCo Aust PPTt aFinancialAccountingTheorybyDeegan 8 31 ManagerialbranchofStakeholderTheory Attemptstoexplainwhencorporatemanagementwillbelikelytoattendtotheexpectationsofparticular powerful stakeholdersmoreorganisation centredstakeholdersidentifiedbytheorganisationextenttowhichorganisationbelievesrelationshipneedstobemanagedininterestsoftheorganisation Copyright 2000McGraw HillBookCo Aust PPTt aFinancialAccountingTheorybyDeegan 8 32 Managerialbranch continued Theoriescanbetestedwithempiricalobservationunlikenormativeethicalbranchspecificallyconsidersthedifferentstakeholdergroupswithinsociety andhowtheyshouldbestbemanagednotsocietyasawholelikeLegitimacyTheoryexpectationsofstakeholdersconsideredtoimpactonoperatinganddisclosurepolicies Copyright 2000McGraw HillBookCo Aust PPTt aFinancialAccountingTheorybyDeegan 8 33 Stakeholderpower Organisationwillnotrespondtoallstakeholdersequally buttothemostpowerfulstakeholderpowerisafunctionofthestakeholder sdegreeofcontroloverresourcesrequiredbytheorganisationeg labour finance influentialmedia abilitytolegislate abilitytoinfluenceconsumptionoftheorganisation sgoodsandservices Copyright 2000McGraw HillBookCo Aust PPTt aFinancialAccountingTheorybyDeegan 8 34 Stakeholderpower continued Majorroleofmanagementistoassesstheimportance