The Comparability of Non-Financial Information in Insurance Companies

• Autorzy: Magdalena Chmielowiec-Lewczuk , Marzanna Lament , Kinga Bauer , Ewa Spigarska
• Języki publikacji: EN

Abstrakty

EN

Purpose: The paper aims to assess the comparability of non-financial information disclosed in the annual reports of insurance companies. Design/methodology/approach: This study applies to the Polish insurance market. The reports of the following insurance companies have been evaluated: PZU, Ergo Hestia, and UNIQA. The methodology is based on the NiCE index of financial reporting quality assessment, though it's original. The authors have developed a method of evaluation suited to the specific nature of non-financial information. A set of six areas is prepared and a five-point Likert's scale is applied to assess how the criteria defined for these areas are fulfilled. Findings: The comparability of non-financial information across insurance companies is a very difficult and subjective process. This is first of all due to the fact this information is not measurable and the structures of non-financial reporting by the particular companies are not formalised. The reports disclose some varied extents of details, not only for the particular undertakings, but even over years. This requires some systematic standards of non-financial reporting to be compiled and assessment indicators for the positions of insurance companies to be standardised in future. Research limitations/implications Since the research sample was limited, the study should be treated as a pilot and its results as an introduction to further, more in-depth empirical research. Social implications: Non-financial information relates to the realisation of sustainable development strategies, in particular, the ESG (Environment Social Governance) issues, and forms a major area of assessment of an economic undertaking's reliability. It's therefore important that it shows certain useful characteristics, in particular, comparability, especially important to decision-making processes. This study identifies some areas for improvement and thus contributes to the improvement and restricts the risk of the decision-making process in both insurance companies and organisations that constitute their social and economic environment. Originality/value: This research extends the knowledge concerning the assessment of non-financial reporting quality and fills a gap in research into its comparability in insurance companies. (original abstract)

Słowa kluczowe

EN

Insurance company; Quality assessment; Non-financial reporting; Reporting; Insurance market; Pilot studies

PL

Towarzystwa ubezpieczeniowe; Ocena jakości; Sprawozdawczość niefinansowa; Raportowanie; Rynek ubezpieczeniowy; Badania pilotażowe

• Czasopismo: Zeszyty Naukowe. Organizacja i Zarządzanie / Politechnika Śląska
• Rocznik: 2023
• Numer: z. 182 Współczesne zarządzanie = Contemporary Management
• Strony: 9--30

Twórcy

autor

Magdalena Chmielowiec-Lewczuk

• Wroclaw University of Economics and Business

autor

Marzanna Lament

• Casimir Pulaski Radom University

autor

Kinga Bauer

• Cracow University of Economics

autor

Ewa Spigarska

• University of Gdansk

Bibliografia

• 1. Almehairi, M.N., Ketait, A., Al Qassim, R., Grassa, R. (2021). Does IFRS adoption enhance the financial reporting quality of DFM listed companies. Strategies in Accounting and Management, Vol. 3, No. 2, pp. 1-7.
• 2. Axjonow, A., Ernstberger, J., Pott, Ch. (2018). The impact of corporate social responsibility disclosure on corporate reputation: a non-professional stakeholder perspective. Journal of Business Ethics, Vol. 151, pp. 429-450, doi.org/10.1007/s10551-016-3225-4.
• 3. Bauer, K., Chmielowiec-Lewczuk, M., Lament, M., Spigarska, E. (2021). Wielowymiarowość informacji finansowych i niefinansowych w zakładach ubezpieczeń. Katowice: IUS PUBLICUM Instytut Prawa Gospodarczego.
• 4. Beest van F., Braam, G., Boelens, S. (2009). Qualitative of financial reporting: measuring qualitative characteristics. NiCE Working Paper, Vol. 09, No. 108, Radboud University Nijmegen, pp. 1-41.
• 5. Breijer, R., Orij, R.P. (2022). The comparability of non-financial information: an exploration of the impact of the non-financial reporting directive (NFRD, 2014/95/EU). Accounting in Europe, Vol. 3, No. 23, pp. 1-29, doi.org/10.2139/ssrn.3874896.
• 6. Chauhan, Y., Kumar, S.B. (2019). Does accounting comparability alleviate the informational disadvantage of foreign investors? International Review of Economics & Finance, No. 60, pp. 114-129.
• 7. Chen, A., Gong, J.J. (2019). Accounting comparability, financial reporting quality, and the pricing of accruals. Advances in Accounting, No. 45, pp. 22-34.
• 8. Chmielowiec-Lewczuk, M. (2018). Modelowanie strategii kosztowej w zakładzie ubezpieczeń. Uwarunkowania rynku. Wrocław: Wydawnictwo Uniwersytetu Ekonomicznego we Wrocławiu.
• 9. Cole, V., Branson, J., Breesch, D. (2010). Main issues on financial reporting for SMEs, paper presented at Annual Congress of European Federation of Accountants & Auditors for SMEs, 13th May, London.
• 10. Commission Regulation (EC) No 1126/2008 of 3 November 2008 adopting certain international accounting standards in accordance with Regulation (EC) No 1606/2002 of the European Parliament and of the Council - as last amended by Commission Regulation (EU) 2020/551 of 21 April 2020. L/127.
• 11. Crous, C., Battisti, E., Leonidou, E. (2022). Non-financial reporting and company financial performance: a systematic literature review and integrated framework. EuroMed Journal of Business, Vol. 17, No. 4, pp. 652-676, doi.org/10.1108/EMJB-12-2020-0134.
• 12. Daske, H.L., Hail, Ch., Leuz, R., Verdi, R.S. (2008). Mandatory IFRS reporting around the world: early evidence on the economic consequences. Journal of Accounting Research, No. 46, pp. 1085-1142.
• 13. De Franco, G., Kothari, S.P., Verdi, R.S. (2011). The benefits of financial statement comparability. Journal of Accounting Research, Vol. 49, No. 4, pp. 895-931.
• 14. Directive 2014/95/EU of the European Parliament and of the Council of 22 October 2014 amending Directive 2013/34/EU as regards the disclosure of non-financial and diversity information by certain large undertakings and groups (OJ L 330/1, 15.11.2014) (Non-financial Reporting Directive, NFRD).
• 15. Directive 2022/2464 of the European Parliament and of the Council of 14 December 2022 amending Regulation (EU) No 537/2014, Directive 2004/109/EC, Directive 2006/43/EC and Directive 2013/34/EU with regard to corporate sustainability reporting (OJ L 322/15 of 16.12.2022) (Corporate Sustainability Reporting Directive, CSRD).
• 16. Hołda, A., Staszel, A. (2014). Rachunkowość finansowa ubezpieczycieli. Podejście pragmatyczne. Teoria, zadania, testy. Warszawa: CH Beck.
• 17. Hope, O.K. (2004). Variations in the financial reporting environment and earnings forecasting. Journal of International Finance, Management & Accounting, Vol. 15, No. 1, pp. 21-43.
• 18. Jibril, R.S. (2019). The impact of International Financial Reporting Standard (IFRS) adoption on accounting quality in Nigerian Listed Money Deposit Banks. Applied Finance and Accounting, Vol. 5, No. 1, pp. 56-72.
• 19. Jonas, K. (2017). Raportowanie informacji niefinansowych w zakładach ubezpieczeń. In: J. Krasodomska (Ed.), Społeczna odpowiedzialność biznesu w rachunkowości. Teoria i praktyka (pp. 73-101). Warszawa: Difin.
• 20. Jonas, K. (2020). Rachunkowość zakładów ubezpieczeń i zakładów reasekuracji. Warszawa: Difin.
• 21. Karmańska, A., Kędziora, K., Lament, M. (2003). Rachunkowość finansowa zakładów ubezpieczeń. Pojęcia, problemy, zadania. Warszawa: Difin.
• 22. Kavitha, N.V., Anuradha, T. (2016). Corporate social responsibility in insurance sector in India. International Journal of Innovative Research & Development, Vol. 5, No. 2, pp. 23-34.
• 23. Krasodomska, J., Cho, Ch.H. (2017). Corporate social responsibility disclosure. Sustainability Accounting, Management & Policy Journal, Vol. 8, No. 1, pp. 73-101, doi.org/10.1108/SAMPJ-02-2016-0006.
• 24. Krištofik, P., Lament, M., Musa, H. (2016). The reporting of non-financial information and the rationale for its standardization. E&M Economics and Management, Vol. 2, No. XIX, pp. 157-175, doi.org/10.15240/tul/001/2016-2-011.
• 25. Lament, M. (2017). Raportowanie informacji niefinansowych w zakładach ubezpieczeń w Polsce. Zeszyty Teoretyczne Rachunkowości, No. 91, pp. 63-86, doi.org/10.5604/01.3001.0009.8024.
• 26. Lament, M., Bukowski, S. (2022). Non-financial reporting as a determinant of financial efficiency of insurance companies. The Polish Statistician, Vol. 67, No. 7, pp. 63-86, doi.org/10.5604/01.3001.0015.9299.
• 27. Lament, M., Piątek, J. (2023). Rachunkowość zakładów ubezpieczeń i reasekuracji. Warszawa: PWN.
• 28. Look, I., Seele, P. (2013). Analyzing sector-specific CSR reporting: social and environmental disclosure to investors in the chemicals and banking and insurance industry. Corporate Social Responsibility Environmental Management, Vol. 22, No. 2, pp. 42-53.
• 29. Majeed, M.A., Chao, Y. (2022). Financial statement comparability and stock liquidity: evidence from China. Applied Economics, Vol. 54, No. 47, pp. 5497-5514.
• 30. Riahi-Belkaoui, A. (2004). Accounting theory. Hampshire: Cengage Learning EMEA.
• 31. Scholtens, B. (2011). Corporate Social Responsibility in the international insurance industry. Sustainable Development, Vol. 19, No. 2, pp. 123-142.
• 32. Simona, M. (2013). Social responsibility of insurance company. Annals - Economy Series, No. 3, pp. 13-22.
• 33. Skinner, F.S., Ioannides, M. (2005). FRS17 and the sterling double a corporate yield curve. Journal of Business Finance & Accounting, Vol. 32, No. 5-6, pp. 1141-1169.
• 34. Sunder, S. (2007). Uniform financial reporting standards: reconsidering the Top-Down Push. Yale ICF Working Paper, No. 7-11, pp. 1-24.
• 35. Szadziewska, A. (2015). Przejrzystość i porównywalność informacji niefinansowych w sprawozdawczości spółek w świetle zmian regulacyjnych. Prace Naukowe Uniwersytetu Ekonomicznego we Wrocławiu, No. 396, pp. 141-149, doi.org/10.15611/pn.2015.396.15.
• 36. The Polish Act of 15 December 2016 amending the Accounting Act (Journal of Laws 2017, item 61).
• 37. Waniek-Michalak, H. (2017). Porównywalność w czasie informacji o wynikach działalności społecznie odpowiedzialnej firm raportujących według zasad GRI. Zeszyty Teoretyczne Rachunkowości, Vol. 1, No. 147, pp. 129-143, doi.org/10.5604/01.3001.0009.8027.
• 38. Wieteska-Rosiak, B. (2012). Społeczna odpowiedzialność zakładów ubezpieczeń. Acta Universitatis Lodziensis. Folia Oeconomica, No. 274, pp. 129-140.
• 39. Winman, A.J. (2021). Financial impact of social responsibility on publicly traded insurers. Retrieved from: https://scholarworks.waldenu.edu/cgi/viewcontent.cgi?article=11176& context=dissertations, 15.06.2022.
• 40. Yurisandi, T., Puspitasari, E. (2015). Financial reporting quality - before and after IFRS adoption using NiCE qualitative characteristics measurement. Procedia - Social and Behavioural Sciences, No. 211, pp. 644-652.

Identyfikatory

DOI

10.29119/1641-3466.2023.182.1