The Representation Framework of the Citizen–Shareholder Approach in Financial Reporting and Its Role in Enhancing Stakeholder Information Persuasion Desirability
Keywords:
Citizen-shareholder reporting, stakeholder persuasion, information asymmetryAbstract
Objective: This study aims to develop a conceptual framework for citizen–shareholder-based financial reporting and examine its effect on the desirability of stakeholder information persuasion in capital market companies.
Methodology: The research adopted a mixed-methods design. In the qualitative phase, thematic analysis based on the Attride-Stirling framework and Braun and Clarke’s coding procedure was conducted using 12 in-depth and semi-structured expert interviews. Open, axial, and selective coding processes led to the identification of basic, organizing, and global themes forming the theoretical framework of citizen–shareholder reporting. The reliability of extracted dimensions was evaluated through Delphi analysis using mean scores and agreement coefficients. In the quantitative phase, Partial Least Squares Structural Equation Modeling (PLS-SEM) was employed to test the research hypothesis. Data were collected using a researcher-made questionnaire measuring citizen–shareholder reporting and a standardized stakeholder information persuasion questionnaire. Measurement model validity and reliability were assessed using factor loadings, Cronbach’s alpha, composite reliability, and convergent validity indicators.
Findings: Qualitative findings resulted in a multidimensional conceptual framework explaining the components of citizen–shareholder reporting. Quantitative analysis demonstrated that implementing the citizen–shareholder reporting approach has a positive and statistically significant effect on stakeholder information persuasion desirability. The results indicate that socially responsible disclosure practices, human resource reporting functions, and operational governance transparency enhance organizational credibility, reduce information asymmetry, and strengthen psychological, instrumental, and structural persuasion mechanisms among stakeholders.
Conclusion: The findings suggest that transitioning from traditional financial reporting toward a citizen–shareholder framework improves organizational legitimacy, strengthens stakeholder engagement, and enhances persuasive information value in capital markets, positioning this approach as an emerging paradigm for modern financial disclosure systems.
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Copyright (c) 2025 Leyla Seydabadi, Maryam Shahri, Monir Jafaei Rahni, Mohamadreza Abdoli (Author)
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