The International <IR> Framework’s impact on the social and relationship disclosures in the healthcare industry

Abstract Background and Problem: The altering business world and the growing requests from stakeholders have resulted in the establishment of new reports. These are among others Sustainability reports and Integrated Reporting. On the contrary, traditional financial reports do not consider the significance of intangible assets in modern entities. The social and relationship capital has further shown to be important for firms, especially healthcare companies and pharmaceuticals, but is not as developed as other capitals within the <IR> framework and therefore not always included in annual reports. However too few disclosures within this area could lead to high liabilities. The IIRC launched the <IR> framework year 2013 as a solution, as it gives a more comprehensive view of the reporting entity. Within this framework there are six capitals: manufactured, human, financial, natural, intellectual and social and relationship.   Purpose: The purpose of this thesis is to find out how the International <IR> Framework has influenced the reporting of the social and relationship disclosures within the healthcare industry, to compare the reporting of the six medical firms chosen and to examine how the social concerns have been developed over time. Delimitations: This study is conducted over a period of three years, from year 2012 to year 2014. It only examines healthcare companies which use the International <IR> framework and it has solely focus on the social and relationship capital. All other capitals within the <IR> framework are excluded from the study. Method: This study has a qualitative research strategy and is based on information collected from published documents in form of annual reports. The annual reports from year 2010, 2011 and 2012 are used to find social and relationship disclosures and a disclosure scoreboard is used to find similarities, differences and patterns. Empirical Results and Conclusion: It has been found that the aggregated social and relationship disclosures have been reduced over time. The year followed by the release of the <IR> framework was seen to have the least disclosures and therefore conclusion was drawn that the <IR> framework had a negative influence on the social and relationship disclosures. There were also differences among the companies studied both in extent and content. The former could be linked to factors such as size and nationality and the latter could be linked to reputation preservation and legitimacy interests.

Strategic Information Disclosure through Integrated Reporting : A study on OMXS30-listed companies’ compliance with the <IR> Framework content element Strategy and Resource Allocation

Background and problem – As a result of financial crises and the realization of a broader stakeholder network, recent decades have seen an increase in stakeholder demand for non- financial information in corporate reporting. This has led to a situation of information overload where separate financial and sustainability reports have developed in length and complexity interdependent of each other. Integrated reporting has been presented as a solution to this problematic situation. The question is whether the corporate world believe this to be the solution and if the development of corporate reporting is heading in this direction. Purpose - This thesis aims to examine and assess to what extent companies listed on the OMX Stockholm 30 (OMXS30), as per 2016-02-28, comply with the Strategic content element of the <IR> Framework and how this disclosure has developed since the framework’s pilot project and official release by using a self-constructed disclosure index based on its specific items. Methodology – The purpose was fulfilled through an analysis of 104 annual reports comprising 26 companies during the period of 2011-2014. The annual reports were assessed using a self-constructed disclosure index based on the <IR> Framework content element Strategy and Resource Allocation, where one point was given for each disclosed item. Analysis and conclusions – The study found that the OMXS30-listed companies to a large extent complies with the strategic content element of the <IR> Framework and that this compliance has seen a steady growth throughout the researched time span. There is still room for improvement however with a total average framework compliance of 84% for 2014. Although many items are being reported on, there are indications that companies generally miss out on the core values of Integrated reporting. 

Intellectual Capital Disclosures: The effect of mandatory Integrated Reporting

Purpose – The purpose of this thesis is to investigate how mandatory obligation to follow the International <IR> Framework while producing the corporate reports influence the intellectual capital disclosures in the reports. Research design – The study uses a disclosure scoreboard to score a selected sample of annual reports depending on whether it disclose intellectual capital information or not. The sample consists of companies listed in South Africa were it is mandatory to follow the integrated reporting framework and companies listen in Sweden where it is not mandatory to produce an integrated report. Empirical results and conclusion – The results of this thesis indicates that the mandatory use of the International <IR> Framework have an impact on the amount of intellectual capital disclosures. Further it concludes that higher level of compliance with the framework further increases the intellectual capital disclosure. Contribution – This study has been an early step towards concluding whether the use of integrated reporting has any effect on the amount of intellectual capital information disclosed in companies’ annual report.

Transparency in European football : A study of financial disclosure transparency from a supporter perspective

Background and Problem: Despite the exploding increase in revenue by more than 500 percent (1996-2014) among European football clubs, the operating profit in the “big five” leagues are, paradoxically, inexistent or very low. Hence, there is a need for more transparent financial reporting in European football. To preserve the game’s well-being and establish a sustainable future, UEFA introduced Financial Fair Play (FFP) back in 2010 as a part of their club licensing requirements. The transparency that FFP is intended to improve is however only disclosed to UEFA and its member associations, which is only one of many stakeholders. In times of financial turmoil in European football clubs, where fair play and sustainability is frequently discussed since the implementation of FFP, one could ask; is it really fair play that not all European football clubs are obligated to be transparent towards all their stakeholders and supporters? Purpose: The purpose of this thesis is to, from a supporter perspective, look at how transparent European football clubs’ financial disclosure is. Methodology: The research has elements of both a deductive and an inductive approach and uses a disclosure checklist with a cross-sectional design, in order to measure disclosure transparency.  Empirical Results and Conclusion: Even though the empirical findings proved that financial reporting transparency are present within European football, the conclusion is that the financial reporting is generally not transparent within the industry.