dc.description.abstract | In knowledge economy, key success factors of a business have migrated from traditional tangible assets to intangible assets such as: Customer Relationship Management, Supply Chain Management , Human Resource Management and Innovation. Focusing on nonfinancial information is, therefore, becoming more imperative in valuing a business. However, such nonfinancial information or value drivers are rarely seen in current reporting practice. A trend of unveiling business information shall tend to reflect capability of value creating process of a business for the purpose of appraising value. Eventually, value reporting shall completely substitute financial reporting.
The purpose of this thesis is to probe into the current practice and the trend of information disclosure. It uses the structure of ValueReporting proposed by PriceWaterhouseCooper(PwC)Education Foundation, which covers four aspects of performance indicators including, market profile, value strategy, value management, and value platform. Based on this structure, several items on performance indicators were established with detailed description in general and banking firms. A selected foreign bank and a selected domestic bank were used to compare the content of information disclosure under the framework of PwC ValueReporting. In addition, questionnaires are used to find out domestic managers and investors’ view of current trend of reporting practice.
The results of the case study indicate that the information disclosure by the foreign bank is more consistent with the PwC ValueReporting structure than the domestic bank. The results of sample survey show that the current financial reporting does not meet the demand of information by investors. The survey also shows that though managers recognize the importance of disclosing information of business value drivers, they are reluctant to do so. In fact, there exist information gap, reporting gap, understanding gap, and perception gap between managers and investors. | en_US |