EFFECT OF NON FINANCIAL INFORMATION ON FINANCIAL PERFORMANCE: EVIDENCE FROM TURKEY

Yıl 2014, Cilt: 2 Sayı: 1, 1 - 18, 07.07.2015

Aylin Poroy Ersoy , Tuba Bora , Lale Karabıyık

https://doi.org/10.18825/irem.07887

Öz

The primary objective of disclosure of financial and non financial information is to inform analysts and investors about the amount, timing and uncertainty of future earnings. The value relevance of financial information provided by financial reports have been attracted many researchers and many of them found the positive relationships. This paper examines whether the level of non financial information disclosure affects the financial performance of companies. There are suggestions in the academic literature that providing additional financial or non financial information decreases information asymmetry between companies and investors, and also enhances corporate transparency. Although it is relatively reasonable to measure the financial performance of a company by indicators; it is not so reasonable to find out indicators to measure the non financial performance of a company. This is why the non financial information results from the organizational, market based, social and intellectual environment of the companies. In our paper, according to the previous literature, initially we indicated “disclosure scores” for BIST 100 companies which refer to their level of non financial information disclosures. We benefited largely from the annual reports to find data concerning non financial disclosure of companies. In our second part of research, we analyzed our data via panel data analysis.

Anahtar Kelimeler

non financial information; financial information; BIST 100; Turkey

Kaynakça

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