Linkage between strategy and financial performance disclosure in annual reports: A new reporting path for organizational learning
研究了英国公司法修订后，年报中战略披露与财务绩效披露之间的关联如何增强，并发现这种关联促进了组织学习，对政策制定者和企业有启示。
We examine the reporting practice of linkage between strategy disclosures (management discussion of firm strategy and the business model) and financial performance disclosures in annual reports as a path for organizational learning. For identification, we use the UK Company Law Amendment mandating a Strategic Report as a separate section of the annual report so that strategy disclosures provide sufficient context for financial statements. We confirm that the linkage between strategy and performance disclosures in annual reports increases incrementally after the amendment for firms that are more strongly affected by the Company Law Amendment. For these firms, we document an incremental rise in measures associated with organizational learning (e.g., measures of organizational changes and workforce engagement). Our study has important policy implications for the structure of textual disclosure in annual reports.