Purpose: In an effort to improve comparability between investment products and standardize investment terminology, Australian legislators recently required investment managers to report to what extent they employ ‘social considerations’ in portfolio construction. This paper assesses if the objectives of the legislation have been met. Methodology: The context of legislative development is examined in Parliamentary debates. Practised accountabilities are identified by examining a sample of the initial set of social information disclosures issued under the purview of the legislation. Although the regulatory laissez faire approach can be criticised of and in itself, the quality of social information disclosures is assessed by the degree of compliance to regulatory requirements. Findings: Initial social disclosures were poor, providing little basis for comparability. In some instances, the quality of information relating to managers’ use of ‘social considerations’ had declined relative to information supplied on a voluntary basis before the legislation took effect. Research implications: Answers calls for studies on the social responsiveness of financial markets. Findings provide important evidence for public policy debate. Originality/value: Establishes a set of standards for disclosures of non-financial information attached to retail managed investment products.
|Title of host publication||Proceedings of the 30th Annual Congress of the European Accounting Association|
|Place of Publication||Lisbon, Portugal|
|Publisher||European Accounting Association|
|Number of pages||43|
|Publication status||Published - 2007|
|Event||Annual Congress of the European Accounting Association (30th : 2007) - Lisbon, Portugal|
Duration: 25 Apr 2007 → 27 Apr 2007
|Conference||Annual Congress of the European Accounting Association (30th : 2007)|
|Period||25/04/07 → 27/04/07|
- ethical investment
- social reporting
- Australian financial services
- practiced accountabilities
Haigh, M., & Guthrie, J. (2007). Australian regulation governing the use of 'social considerations' in managed investment portfolios. In W. Buijink (Ed.), Proceedings of the 30th Annual Congress of the European Accounting Association Lisbon, Portugal: European Accounting Association.