Abstract

The purpose of this paper is to theorize a comprehensive theoretical framework for describing forward-looking information (FLI) practices of companies. The paper aims to discuss the theories usually applied to explain voluntary disclosure in literature and the interrelated theoretical perspectives regarding the role of voluntary disclosure in integrated reporting. Four relatively most common theories in disclosure literature were combined (that is agency theory, signalling theory, stakeholder theory and legitimacy theory) in a theoretical framework to interpret the key premises and the implications in disclosing FLI. The paper offers a concise template in analysing FLI for both researchers and practitioners. Moreover, it suggests some reflections on the topic and identifies possible useful paths to develop future studies of theoretical and practical relevance. The proposed framework could be valuable for producers and users of financial disclosure as its characteristics comply well with the guiding concepts developed in disclosure theories.

Key words: Forward-looking information, voluntary disclosure, theories, theoretical framework.