Hide-and-seek in corporate disclosure: evidence from negative corporate incidents

Rudkin, Bradley; Kimani, Danson; Ullah, Subhan; Ahmed, Rizwan; Farooq, Syed Umar

Abstract

© 2018, Emerald Publishing Limited. Purpose: This paper investigates the legitimacy tactics used in the annual reports of UK listed companies in the aftermath of major corporate scandals. Design/methodology/approach: We carried out a content analysis of annual reports of 19 companies that have been involved in corporate scandals with a view to understand how firms communicate negative scandals affecting them. Findings: The findings reveal that firms use a wide range of legitimisation strategies in the manner that contribute to shape disclosure communications concerning negative incidents. For instance, some firms may offset the negativity linked to an incident by rendering such explanations amidst positive information. Originality/value: Contrary to earlier studies conducted on accounting scandals, the authors incorporated extensive corporate scandals such as human rights violations, controversies concerning child labour, environmental scandals, corruption, financial embezzlement and tax evasion.

Citation

Rudkin, B., Kimani, D., Ullah, S., Ahmed, R., & Farooq, S. U. (2019). Hide-and-seek in corporate disclosure: evidence from negative corporate incidents. Corporate Governance, 19(1), 158-175. https://doi.org/10.1108/CG-05-2018-0164

• Journal Article Type: Article
• Acceptance Date: Aug 22, 2018
• Online Publication Date: Feb 4, 2019
• Publication Date: Feb 4, 2019
• Deposit Date: Jan 27, 2020
• Journal: Corporate Governance (Bingley)
• Print ISSN: 1472-0701
• Publisher: Emerald
• Peer Reviewed: Peer Reviewed
• Volume: 19
• Issue: 1
• Pages: 158-175
• DOI: https://doi.org/10.1108/CG-05-2018-0164
• Public URL: https://nottingham-repository.worktribe.com/output/3811035
• Publisher URL: https://www.emerald.com/insight/content/doi/10.1108/CG-05-2018-0164/full/html