Abstract
This study represents a theoretical analysis with the purpose to continue the discussion on the relationship between management accounting (MA) and financial accounting (FA), by concentrating on the role of risk reporting as a possible manifestation of their convergence. Moreover, the analysis focuses on the private-firm sector as private firms represent the backbone of the economic system of several countries and little is known about financial and non-financial reporting. Drawing on the neo-Durkheimian institutional theory, this paper develops a conceptual framing that considers risk as an embedded element of the business domain and risk reporting as a direct outcome of the convergence between MA and FA in private firms. Furthermore, the neo-Durkheimian institutional theory emphasizes that the owners and managers’ risk attitude is a crucial element affecting risk disclosure, especially in private firms.
Original language | English |
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Journal | Financial Reporting |
Volume | 1 |
Issue number | 1 |
Pages (from-to) | 29-60 |
ISSN | 2036-6779 |
DOIs | |
Publication status | Published - 2021 |
Keywords
- Risk Reporting
- Risk
- Non-financial information
- Financial accounting
- management accounting
- private firms