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

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