THE INVESTIGATION OF FINANCIAL REPORTS’ COMPLEXITY IN LARGE COMPANIES
Keywords:information disclosure, financial reports, complexity.
The article presents the investigation of financial statements’ complexity in large companies. In this information age the problem we met in financial valuation is the volume of obligatory and voluntary disclosed information and how it influences the complexity. The aim of research is to find out the complexity of financial statements of Lithuanian companies which are listed in the stock market exchange. Factors influencing the level of financial reports’ complexity can be grouped: requirements for legal environment of information disclosure, multiple and volatile activity, volume of voluntary disclosed financial and non financial information in financial statements. And finally referring to Damodaran’s adapted methodology an information based index can be used for measuring complexity. The investigation of financial reports’ complexity was carried according to the financial data of fifteen Lithuanian companies listed in stock market exchange. The results showed different volume of voluntary information disclosure in the companies and disclosed little information about working capital, researches and forecasts.