Visual representation in selected Maltese listed companies’ annual reports

Abstract

PURPOSE: The main aim of this study is to determine whether in Malta there is reason for integrating visuals in annual reports. This study analyses the use, functionality and purpose of visual images embodied in the latest annual reports of selected Maltese listed companies and their effect, if any, on the producers/preparers and users of such reports. DESIGN: The focus of this study is on photographs, graphs, information graphics, colour and logos. A detailed review of the relevant literature is made, and a content analysis of the Maltese listed companies’ annual reports is presented to steer the selection and an in-depth analysis of nine latest annual reports. Semistructured interviews are conducted with annual report producers/preparers and users. FINDINGS: Visuals have an important role to play in annual reports in communicating and showcasing the entity’s accomplishments and financial position, and are anything but inconsequential. The annual reports’ analysis reveals their rich, hidden meanings and how they capture unaccounted organisational values. Very few listed entities persist at incorporating visuals in their annual reports. In contrast to shareholders, financial experts as users of annual reports pay little attention, if at all, to visual content. CONCLUSIONS: This study concludes that some Maltese listed companies use ample visuals in their annual reports, though in general, Maltese annual reports are still lagging behind in terms of visuals. Companies should seek to enhance the design of their reports primarily for the sake of the ordinary shareholder, who is struggling to understand the report’s pervasive technicalities. VALUE: This study sheds light on the unresearched and often ignored visuals in Maltese annual reports and may inspire others to amplify on the research. The findings should encourage Maltese preparers to incorporate visual images in their entities’ annual reports.