Profit and organisational legitimacy in an emerging market

Prasad, Acklesh, Green, Peter, & Heales, Jon (2009) Profit and organisational legitimacy in an emerging market. In Proceedings of the 2009 Accounting and Finance Association of Australia and New Zealand Conference, AFAANZ, Accounting and Finance Association of Australia and New Zealand, Adelaide, SA, pp. 1-25.

Accepted Version (PDF 136kB)
[img] ERA Evidence (PDF 356kB)
Administrators only | Request a copy from author

View at publisher


While there is common acknowledgement that the main aim of organisations is to maximise shareholder wealth, firms also have the obligation to manage the needs of a broader group of stakeholders as these firms are a product of social creation. In this study, we test the notion that the concept, profit, is fundamental to society’s perception of the firm in an emerging market, and the need for a firm to legitimise a level of profit. We evaluate the relationship between the readability of various components of corporate annual reports and the level of profit, and we also take into account the nature of disclosure (mandatory and non-mandatory), the size of the firm and the nature of setup (public enterprises and publicly listed companies). Our findings suggest that, as with developed markets, in emerging markets profit is indeed an important determinant of the nature of operations of a firm, and that firms consider readability of their disclosures in attempting to legitimise a level of profit.

Impact and interest:

Search Google Scholar™

Citation counts are sourced monthly from Scopus and Web of Science® citation databases.

These databases contain citations from different subsets of available publications and different time periods and thus the citation count from each is usually different. Some works are not in either database and no count is displayed. Scopus includes citations from articles published in 1996 onwards, and Web of Science® generally from 1980 onwards.

Citations counts from the Google Scholar™ indexing service can be viewed at the linked Google Scholar™ search.

Full-text downloads:

333 since deposited on 08 Jun 2012
12 in the past twelve months

Full-text downloads displays the total number of times this work’s files (e.g., a PDF) have been downloaded from QUT ePrints as well as the number of downloads in the previous 365 days. The count includes downloads for all files if a work has more than one.

ID Code: 50812
Item Type: Conference Paper
Refereed: No
Keywords: Legitimacy Theory, Mandatory Disclosures, Non-Mandatory Disclosures, Profit, Public Enterprises, Publicly Listed Companies
Subjects: Australian and New Zealand Standard Research Classification > COMMERCE MANAGEMENT TOURISM AND SERVICES (150000) > ACCOUNTING AUDITING AND ACCOUNTABILITY (150100)
Divisions: Current > QUT Faculties and Divisions > QUT Business School
Copyright Owner: Copyright 2009 [please consult the author]
Deposited On: 08 Jun 2012 00:43
Last Modified: 18 Jul 2017 02:32

Export: EndNote | Dublin Core | BibTeX

Repository Staff Only: item control page