Influence of financial performance on the disclosure of Balanced Scorecard (BSC) indicators in agribusiness

Abstract

The Disclosure Theory posits that entities can opt to disclose information on either a mandatory or voluntary basis, encompassing both financial and non-financial indicators. Against this backdrop, the present study endeavors to ascertain the potential influence of financial performance variables (namely, size, indebtedness, return on assets, leverage, auditing, and growth) on the disclosure of indicators constituting the Balanced Scorecard (BSC) within the management reports of Brazilian agribusinesses listed on B3. Employing a quantitative and descriptive approach, the research employs content analysis to scrutinize management reports spanning from 2011 to 2019, in order to construct the independent variable indicators. The empirical findings reveal a discernible inclination toward the disclosure of indicators within the financial perspective. This facet accounts for a substantial proportion of the total indicators identified, approximately 56.13%. Among the spectrum of financial performance variables, it is worth noting that only company size manifested statistical significance at the 1% level. This outcome signifies that the dimension of a company's size may indeed exert an influence on the extent to which indicators constituting the BSC are manifested within the purview of management reports. The observations gleaned from this study substantiate extant literature, thereby underlining that agribusiness enterprises, when prioritizing the presentation of financial indicators over non-financial counterparts, engage in a disclosure pattern characterized by discretion, efficiency, and rational expectations.

Keywords: Performance; Financial Indicators; Balanced Scorecard; Agribusiness.