Please use this identifier to cite or link to this item:
Title: Management commentary at HSBC Malta plc : a survey of its significance for the private individual shareholder
Authors: Cutajar AndrĂ©
Keywords: Managerial accounting
Banks and banking
Stockholders -- Malta
Issue Date: 2011
Abstract: Purpose- The study evaluates the significance of management commentary for the private individual shareholders of HSBC Bank Malta plc. This evaluation is carried in view of the 'IFRS Practice Statement Management Commentary' published in December 2010 and following the severe recession that has raised concerns on the adequacy of the flow of information to investors. Design- A quantitative data analysis approach was undertaken. Through self-completion postal questionnaires sent to a stratified random sample of private individual shareholders, a thorough analysis of the readership, usefulness and respondents' perceptions of the management commentary was carried out. Findings- Most of the private individual shareholders do not read the management commentary and do not find it useful for investment decision-making. It emerges, that the financial statements, particularly the Income Statement and the Statement of Financial Position, have a higher readership than the management commentary. However, more than one-third of the respondents read neither the management commentary nor the financial statements. Moreover, despite the IASB's non-binding framework approach, most private individual shareholders surveyed prefer a standard and enforceable format for the management commentary. iii Conclusions- The study concludes that although there is a majority of non-readership, the underlying figures are positive and encouraging. As a matter of fact, the study establishes that the management commentary is providing the shareholders a clear picture of various elements of the company, and the shareholders do not seem to question the credibility and relevance of the management commentary. Implications- The study identifies that the significance of management commentary varies considerably with the shareholders' accounting knowledge and understandability. This implies that increased attention should be directed towards investors' education. Moreover, a more explicit shift in focus from the quantity to the quality of disclosures in management commentary is a requisite.
Description: B.ACCTY.(HONS)
Appears in Collections:Dissertations - FacEdu - 2011

Files in This Item:
File Description SizeFormat 
  Restricted Access
2.74 MBAdobe PDFView/Open Request a copy

Items in OAR@UM are protected by copyright, with all rights reserved, unless otherwise indicated.