engleski

The importance of annual reports in evaluating the performance of listed accommodation companies in Croatia

Financial and non-financial information disclosed on the official websites of authorized institutions such as the Financial Agency or the Zagreb Stock Exchange represent important source of information about companies' business performance and operations for different financial and non-financial statement users. To obtain more comprehensive picture on company's performance, one should collect some additional information beyond those presented in financial statements. Therefore, more and more attention is being given to the disclosures about corporate social responsibility. The European Union recognized the importance of publishing additional, non- financial information on companies' business operations and issued the Accounting Directive in 2013 in which it introduces the obligation for companies to prepare management report, enabling the Member States to exclude micro and small entities from this obligation. In 2015, Croatia implemented the provisions of the Accounting Directive into the Accounting Act. The non-financial statement may be published in the management report as a part of annual report or as a separate report. The empirical research is conducted on a sample of non- financial companies that are quoted on the Zagreb Stock Exchange and that engage in the section of activity I55 – Accommodation, which is the most represented section of activity on the Zagreb Stock Exchange. Based on the information that they present their annual reports, we performed a qualitative or content analysis to explore to which extent they comply with the disclosure requirements that are set in the Accounting Act. Since the tendency of companies to disclose different information, is under the influence of different factors, such as the size of the company, financial performance, ownership structure, etc., we additionally investigated if such factors influence the qualitative and quantitative aspects of annual reports for companies from the research sample.

annual report ; accommodation ; management report ; Zagreb Stock Exchange

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