Value-based management and value reporting. Impact of value reporting on investment decisions and company value perception
Value-based management and value reporting. Impact of value reporting on investment decisions and company value perception

Summary/Abstract: To sustainably tie shareholders to a company, the information asymmetry between managers and capital providers must be reduced. Value reporting becomes a value driver by itself. The objective of this paper is to verify this assumption and to extend the value reporting research to non-US investors’ behavior. Therefore, this paper analyses the effects of valuebased management systems in Germany, known for its bank- and insider-oriented governance system, its weak shareholder protection and accounting conservativism. The novelty of the present research consists also in the used methodology. It is an empirical analysis of potential shareholders’ attention during financial statement analysis on the basis of eye movement observation, also known as eye tracking. The results of the present research question prior findings. Value reporting sections were not given special attention and were not referred to in the overall evaluation of a company’s attractiveness by the test persons.

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