How Business Reporting Changed During the Financial Crisis: A Comparative Case Study of Two Large U.S. Banks

Problems and Perspectives in Management, vol. 12, no. 1, pp. 191-208, 2014

18 Pages Posted: 9 Feb 2015  

Mark K. Muheki

Independent

Klarissa Lueg

University of Aarhus - Department of Business Communication

Rainer Lueg

University of Aarhus - Department of Accounting

Christian Schmaltz

University of Aarhus; True North Institute

Date Written: 2015

Abstract

Challenging times, such as the recent financial crisis, appear to cause organizations to change their business reporting. Yet, there is not much evidence of how changes in business reporting were enacted by banks, and there is only little discussion about the extent to which this can be seen and assessed as crisis communication. Using a comparative case study of two U.S. banks, we investigate how their way to report financial performance changed during the ‘troubled times.’ The investigation uses annual reports that cover years before and during the financial crisis.

The findings suggest that the two banks have substantially changed their business reporting due to new regulations, the unfavorable economic situation, as well as strategic challenges such as loss in customer satisfaction. We thus conclude that business reporting can be seen – at least temporarily – as a tool for crisis communication. We document our findings along the four perspectives the banks use for their business reporting and that reflect the banks’ main stakeholders: shareholders, customers, employees and the community.

Keywords: banks, financial crisis, financial reporting, banking regulation, crisis communication

JEL Classification: M10, G21

Suggested Citation

Muheki, Mark K. and Lueg, Klarissa and Lueg, Rainer and Schmaltz, Christian, How Business Reporting Changed During the Financial Crisis: A Comparative Case Study of Two Large U.S. Banks (2015). Problems and Perspectives in Management, vol. 12, no. 1, pp. 191-208, 2014. Available at SSRN: https://ssrn.com/abstract=2562096

Mark K. Muheki

Independent ( email )

No Address Available

Klarissa Lueg

University of Aarhus - Department of Business Communication ( email )

Jens Christian Skous Vej 4
Aarhus C, 8000
Denmark

Rainer Lueg (Contact Author)

University of Aarhus - Department of Accounting ( email )

Nordre Ringgade 1
Aarhus, DK-8000
Denmark

Christian Schmaltz

University of Aarhus ( email )

Nordre Ringgade 1
Aarhus, DK-8000
Denmark

True North Institute ( email )

145-157 St. John Street
London, EC1V 4PY
United Kingdom
+49-17621761996 (Phone)

HOME PAGE: http://www.tninstitute.eu

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