An analysis of graphic disclosure in annual reports: the case of Turkey

Purpose – The purpose of this study is to: discover the nature and extent of the use of graphs by the top 100 companies listed on the Istanbul Stock Exchange (ISE), Turkey; compare patterns of graphic disclosure across industries; and assess the correlation between graphic disclosure and the variables: open-to-public ratio, firm performance, firm size, and firm profitability. Design/methodology/approach – The methodology of the study is content analysis of annual reports of the corporations listed on the ISE for the year 2006. Findings – The major findings of the study are as follows. About 75 percent of the companies include graphs in their annual reports. The average number of graphs contained in annual reports is 8.6. Financial companies have the highest graph usage per annual report (10.16). The most widely graphed financial variables are sales and earnings; however, earnings per share and dividend per share variables are graphed by none of the companies. There is no correlation between graphic disclosure and the variables open-to-public ratio and firm performance. There is a significant positive correlation between graphic disclosure and the variables firm size and profitability. Research limitations/implications – The findings of this paper are based on the study conducted on the ISE. The results are not generaliseable to non-listed companies. Originality/value – The paper is one of the rare graphical studies conducted in developing countries. Moreover, the study is the first of its kind that has ever been conducted in Turkey.