Accountingisation and the narrative (re)turn of business model information in corporate reporting
Purpose: The debate about whether corporate reports should focus on numbers or narrative is long-standing. The recent push for business model information to be included in corporate reports has revitalised the debate. Many scholars suggest this constitutes a move towards narrative-based reporting. This study aims to investigate the debate and draws a comparison with the juxtaposition of the narrative and rational paradigms. This study also investigates how accountingisation influences the way business model information is presented in corporate reports. Design/methodology/approach: This study analyses data from the financial and non-financial reports from 86 globally listed companies. This study first uses content analysis to code the data. This study then uses a partial least squares-structural equation model to test how accountingisation influences how firms report their business model information. Findings: This study finds that accountingisation and a rational paradigm shape how companies present information about their business model in their financial and non-financial reports. This suggests that the dominance of quantitative measures in accounting affects even the presentation of narrative-based information. Despite the much-touted shift towards qualitative reporting, this study argues that companies find it difficult to cast off the yoke of a traditional numbers-based mindset. Research limitations/implications: This paper contributes to the debate on numbers- versus narrative-based corporate reporting and the workings of narrative and rational paradigms. In it, this study lays out theoretical and empirical findings of accountingisation. This study also makes a case for freeing corporate reports from the shackles of an accountingisation mindset. Originality/value: This study provides new insights into how companies report information about their business models and the influence of narrative and rational paradigms on financial and non-financial reporting.
Year of publication: |
2021
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Authors: | Di Tullio, Patrizia ; La Torre, Matteo ; Dumay, John ; Rea, Michele Antonio |
Published in: |
Journal of Accounting & Organizational Change. - Emerald, ISSN 1832-5912, ZDB-ID 2218013-8. - Vol. 18.2021, 4 (11.10.), p. 592-615
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Publisher: |
Emerald |
Saved in:
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