Narrative Accounting Practices in Indonesia Companies
DOI:
https://doi.org/10.21512/bbr.v8i1.1944Keywords:
creative accounting, narrative accounting, management discussion analysis, impression managementAbstract
This research aimed to reveal creative accounting practices in the form of narrative accounting occuring in companies in Indonesia. Using content analysis, this research analyzed the management discussion and analysis
section in the annual report on the group of companies whose performance had increased and declined in several companies listed on the Indonesian Stock Exchange. This research finds that the narrative accounting practices are applied in these companies. The four methods of accounting narratives are found in both groups of companies. There are stressing the positive and downplaying the negative, baffling the readers, differential reporting, and
attribution.
Plum Analytics
References
Agyemang, K. J., Williams, A. S., & Kim, D. Y. (2015). “Scandalous!”: Reputation, impression management, and Employee Assistance Programs (EAPs) in the NBA. Sport Management Review, 18(4), 609-617.
Beattie, V. (2014). Accounting narratives and the narrative
turn in accounting research: Issues, theory, methodology, methods and a research framework. British Accounting Review, 46(2), 111-134. http://doi.org/10.1016/j.bar.2014.05.001
Bolino, M. C., Kacmar, K. M., Turnley, W. H., & Gilstrap, J. B. (2008). A multi-level review of impression management motives and behaviors. Journal of Management, 34(6), 1080-1109. http://doi.org/10.1177/0149206308324325
Breton, G., & Taffler, R. J. (2001). Accounting information
and analyst stock recommendation decisions: A content analysis approach. Accounting and Business Research, 31(2), 91-101. http://doi.org/10.1080/00014788.2001.9729604
Chng, D. H. M., Rodgers, M. S., Shih, E., & Song, X. (2015). Leaders’ impression management during organizational decline: The roles of publicity, image concerns, and incentive compensation. The Leadership Quarterly, 26(2), 270-285. http://doi.org/10.1016/j.leaqua.2014.12.003
Clarkson, P. M., & Kao, J. L. (1999). Evidence that Management Discussion and Analysis (MD&A) is a part of a firm’s overall disclosure package. Contemporary Accounting Research, 16(1), 111-134.http://doi.org/10.1111/j.1911-3846.1999.tb00576.x
Clatworthy, M., & Jones, M. J. (2001). The effect of thematic structure on the variability of annual report readability. Accounting, Auditing & Accountability Journal, 14(3), 311-326. http://doi.org/10.1108/09513570110399890
Clatworthy, M. A., & Jones, M. J. (2003). Financial reporting of good and bad news: Evidence from accounting narratives. Accounting and Business Research, 33(3), 171-185. http://doi.org/10.1080/00014788.2003.9729645
Clatworthy, M. A., & Jones, M. J. (2006). Differential patterns of textual characteristics and company performance in the chairman’s statement. Accounting, Auditing & Accountability Journal, 19(4), 493-511. http://doi.org/10.1108/09513570610679100
Courtis, J. K. (2004). Corporate report obfuscation: Artefact
or phenomenon? British Accounting Review, 36(3), 291-312. http://doi.org/10.1016/j.bar.2004.03.005
Deegan, C., & Gordon, B. (1996). A study of the environmental disclosure practices of Australian corporations. Accounting and Business Research, 26(3), 187-199. http://doi.org/10.1080/00014788.1996.9729510
Deloitte. (2010). Swimming in words: Surveying narrative
reporting in annual reports. Retrieved from www.iasplus.com/en/binary/uk/1010ukswimminginwords.pdfn
Elliott, W. B. (2006). Are investors influenced by pro forma emphasis and reconciliations in earnings announcements? The Accounting Review, 81(1), 113-133.
Frezatti, F., B. Carter, D., & FG Barroso, M. (2014). Accounting without accounting: Informational proxies and the construction of organisational discourses. Accounting, Auditing & Accountability
Journal, 27(3), 426-464.
Hooghiemstra, R. (2000). Corporate communication and
impression management–new perspectives why companies engage in corporate social reporting. Journal of Business Ethics, 28(1/2), 55-68. http://doi.org/10.1023/A:1006400707757
Hussainey, K., & Al-Najjar, B. (2011). Future-oriented narrative reporting: determinants and use. Journal of Applied Accounting Research, 12(2), 123-138.
Jones, M. J. (2011). The nature, use, and impression management of graphs in social and environmental accounting. Accounting Forum, 35(2), 75-89.
http://doi.org/10.1016/j.accfor.2011.03.002
Maltby, J., & Tsamenyi, M. (2010). Critical perspectives on
accounting narrative accounting disclosure : Its role in the gold mining industry on the Gold Coast 1900-1949. Critical Perspectives on Accounting, 21(5), 390–401. http://doi.org/10.1016/j.cpa.2010.03.001
Marder, B., Slade, E., Houghton, D., & Archer-Brown, C. (2016). “I like them, but won’t ‘like’them”: An examination of impression management associated with visible political party affiliation on Facebook. Computers in Human Behavior, 61, 280-287. http://
doi.org/10.1016/j.chb.2016.03.047
Merkl-Davies, D., Brennan, N., & Vourvachis, P. (2011). Text analysis methodologies in corporate narrative reporting research. In 23rd CSEAR International Colloquium.
Morrow, S. (2005). The bussiness of football: Image management in narrative communication. The British Accounting Review, 38(1), 125-127. http://doi.org/10.1016/j.bar.2005.11.002
PT BFI Finance Indonesia Tbk. (2013). Annual report of PT
BFI Finance Indonesia Tbk. Retrieved from https://www.bfi.co.id/en/investor-relations/annual-report
PT Ciputra Development Tbk. (2013). Annual report of PT
Ciputra Development Tbk. Retrieved from http://www.ciputradevelopment.com/investor-relation/annual-reports
PT Elang Mahkota Teknology Tbk. (2012). Annual report of PT Elang Mahkota Teknology Tbk. Retrieved from http://www.emtek.co.id/annual-report
PT Indo Tambangraya Megah Tbk. (2013). Annual report PT Indo Tambangraya Megah Tbk. Retrieved from http://www.itmg.co.id/id/investor-relation/annualreport
PT Kimia Farma Tbk. (2013). Annual report of PT Kimia Farma Tbk. Retrieved from http://www. kimiafarma.co.id/investor/laporan-tahunan.html
PT Krakatau Steel Tbk. (2013). Annual report of PT Krakatau Steel Tbk. Retrieved from http://www.krakatausteel.com/=content&cid=129
PT London Sumatra Indonesia Plantation Tbk. (2013). Annual report of PT London Sumatra Indonesia Plantation Tbk. Retrieved from http://www.londonsumatra.com/contentDownload.aspx?mid=47
PT Sampoerna Agro Tbk. (2012). Annual report of PT Sampoerna Agro Tbk. Retrieved from http://www.Sampoerna.com/id_id/investor_information/disclosures_and_reports/pages/annual_reports.aspx
PT Sampoerna Agro Tbk. (2013). Annual report of PT Sampoerna Agro Tbk. Retrieved from http://www.sampoerna.com/id_id/investor_information/disclosures_and_reports/pages/annual_reports.aspx
PT Tower Bersama Infrastructur Tbk. (2013). Annual report of PT Tower Bersama Infrastructur Tbk. Retrieved fromhttp://www.tower-bersama.comannual-reports
PT XL Axiata Tbk. (2012). Annual report of PT XL Axiata Tbk. Retrieved from http://www.xl.co.id/ corporate/en/investor/information/ annual-report
PT XL Axiata Tbk. (2013). Annual report of PT XL Axiata Tbk. Retrieved from http://www.xl.co.id/corporate/en/investor/information/annual-report
Shah, A., & Butt, S. (2011). Creative accounting: A tool to help companies in a crisis or a practice to land them into crises. International Conference on Business and Economics Research, 16, 96-102.
Smith, M., & Taffler, R. (1992). The chairman’s statement and corporate financial performance. Accounting & Finance, 32(2), 75-90.
Solomon, J. F., Solomon, A., Joseph, N. L., & Norton, S. D. (2013). Accounting, organizations and society impression management, myth creation and fabrication in private social and environmental reporting: Insights from Erving Goffman. Accounting, Organizations and Society, 38(3), 195-213. http://doi.org/10.1016/j.aos.2013.01.001
Stolowy, Hervé, & Breton, G. (2004). Accounts manipulation:
A literature review and proposed conceptual framework. Review of Accounting and Finance, 3(1), 5-92. http://doi.org/10.1108%2Feb043395
Yekini, L. S., Wisniewski, T. P., & Millo, Y. (2016). Market reaction to the positiveness of annual report narratives. The British Accounting Review, 48(4), 415-430. http://doi.org/10.1016/j.bar.2015.12.001
Downloads
Published
Issue
Section
License
Authors who publish with this journal agree to the following terms:
a. Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License - Share Alike that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this journal.
b. Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial publication in this journal.
c. Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work.
USER RIGHTS
All articles published Open Access will be immediately and permanently free for everyone to read and download. We are continuously working with our author communities to select the best choice of license options, currently being defined for this journal as follows: Creative Commons Attribution-Share Alike (CC BY-SA)
