Journal of Accounting and Management Information Systems (JAMIS)

Determinants of the level of information disclosure in financial statements prepared in accordance with IFRS

Vol. 14, Nr. 3/2015 ,   453-482

Anna Białek-Jaworska
Anna Matusiewicz

Keywords:   IFRS, Poland, mandatory disclosure, voluntary disclosure

Abstract:   Thispaper aims to identify the factors determining the extent of mandatory andvoluntary information disclosure in financial reports of selected Polish listedcompanies. It is particularly important in the context of reporting standardsharmonisation and the related process of IFRS coming into common use inconsolidated accounts since 2005. Weused the Polish Corporate Disclosure Index (PCDI), designed by the researchteam led by Świderska (2010), for non-financial companies. The PCDI indexincludes voluntary disclosures in financial statements, management reports andcorporate social responsibility reports. Basedon a panel study of factors determining the scope of information disclosed by36 Polish public parent companies, forming capital groups, in the years2005-2007 we demonstrated a negative correlation between the extent ofmandatory and voluntary disclosure and the companies’ financial performance(ROE) except for possitive relation with disclosure in management reports.Probably, managers prefer to show off good results in management reports (impression management theory). When the companyprofitability was lower, managers explained the financial standing in moredetail (signaling theory). Auditor plays the importantrole in voluntary and corporate social responsibility disclosures, but not inmandatory ones. Bigger companies disclose more in each area, in accordance withagency theory.