Voluntary financial reporting strategies of South Australian independent schools

Abstract

This paper reports on the voluntary financial reporting strategies and practices of three independent schools in South Australia, examined through agency theory, stakeholder theory and signalling theory, and informed by Argyris and Schön’s theories of action. Insights are gained through the analysis of schools’ financial information, interviews and direct observation of meetings. While key finance personnel espouse accountability, compliance and self-promotion as motivations for financial reporting to parents, only the latter two are reflected in the schools’ reporting practices. The study develops a model that relates perceptions of parents (as members, owners/stakeholders and customers) to the school’s financial reporting strategies.