Australian corporate political donation disclosures: Frequency, quality, and characteristics associated with disclosing companies
Accounting, Auditing & Accountability Journal
ISSN: 0951-3574
Article publication date: 15 March 2019
Issue publication date: 28 May 2019
Abstract
Purpose
A primary tool for managing the democratic risks posed by political donations is disclosure. In Australia, corporate donations are disclosed in government databases. Despite the potential accountability benefits, corporations are not, however, required to report this information in their annual or stand-alone reports. The purpose of this paper is to investigate the quantity and quality of voluntary reporting and seek to add to the nascent theoretical understanding of voluntary corporate political donations.
Design/methodology/approach
Corporate donors were obtained from the Australian Electoral Commission database. Annual and stand-alone reports were analysed to determine the quantity and quality of voluntary disclosures and compared to O’Donovan’s (2002) legitimation disclosure response matrix.
Findings
Of those companies with available reports, only 25 per cent reported any donation information. Longitudinal results show neither a robust increase in disclosure levels over time, nor a clear relationship between donation activity and disclosure. The findings support a legitimation tactic being applied to political donation disclosures.
Practical implications
The findings suggest that disclosure of political donations in corporate reports should be mandatory. Such reporting could facilitate aligning shareholder and citizen interests; aligning managerial and firm interests and closing disclosure loopholes.
Originality/value
The study extends the literature by evaluating donation disclosures by companies known to have made donations, considering time-series data and theorising the findings.
Keywords
Acknowledgements
The authors would like to thank the support provided by Macquarie University who partially funded this project. The authors would also like to thank Dr Matteo La Torre for assistance with the statistical analysis, and Dr Gordon Boyce for comments that greatly improved the manuscript. Finally, the authors would like to acknowledge comments received from participants at the 14th Annual Conference of the Australasian Centre for Social and Environmental Accounting Research (A-CSEAR).
Citation
Tello, E., Hazelton, J. and Leong, S.V. (2019), "Australian corporate political donation disclosures: Frequency, quality, and characteristics associated with disclosing companies", Accounting, Auditing & Accountability Journal, Vol. 32 No. 2, pp. 581-611. https://doi.org/10.1108/AAAJ-04-2016-2515
Publisher
:Emerald Publishing Limited
Copyright © 2019, Emerald Publishing Limited