The Evolution of Non-Financial Disclosure in a European Perspective

Abstract

The propensity to disclose information about corporate non-financial performance has grown across Europe as a result both of Regulation no. 1606/2002 and higher market sensitivity to enterprises adopting socially responsible policies. This study starts with a through examination of the theoretical literature on the subject. In the second part of the study, starting from the European Commission guidelines on the subject, a survey has been made so to group European countries in three categories with respect to their actual degree of compliance, with both the updating process required by EU directives and other regulations concerning mandatory non-financial disclosure at national level, if any. Starting from the results of the empirical evidence, looking at investors as primary category of stakeholders and considering listed company, a statistical analysis has been conducted in order to verify whether there is a correlation between the development of local financial markets and the position assumed by regulatory agencies on non-financial information.

Keywords: Non Financial Reporting, Mandatory and Voluntary Non Financial Disclosure

JEL Classification: M14, M41