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

Rudkin, Bradley and Kimani, Danson and Ullah, Subhan and Ahmed, Rizwan and Farooq, Syed Umar (2019) 'Hide-and-seek in corporate disclosure: evidence from negative corporate incidents.' Corporate Governance, 19 (1). 158 - 175. ISSN 1472-0701

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Abstract

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.

Item Type: Article
Uncontrolled Keywords: Corporate governance, Corporate disclosure, Corporate scandals, Legitimacy tactics
Subjects: H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
Divisions: Faculty of Social Sciences > Essex Business School
Faculty of Social Sciences > Essex Business School > Essex Accounting Centre
Depositing User: Elements
Date Deposited: 07 May 2019 14:40
Last Modified: 07 May 2019 15:15
URI: http://repository.essex.ac.uk/id/eprint/24009

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