DOI: 10.5176/2010-4804_2.3.220
Authors: Mostafa H. Alsohagy
Abstract:
The purpose of the paper is to examine the role of credibility in achieving successful communication processes in financial reporting and to suggest a theoretical framework based
on source credibility theory that can be used to design research exploring credibility as a dimension of communication in financial reporting. The research approach adopted here is a comprehensive, interdisciplinary review drawing on sources from academic and professional communication, financial reporting, and credibility studies. The framework proposed
drives researchers towards considering the financial reporting process holistically, examining senders, receivers, channels and noise, and not simply factors but levels of persuasion and changes in attitude. If financial reporting is the product, and users are the
audience, source credibility theory potentially offers another means of understanding why audiences might be more persuaded by one means of financial reporting than another. This paper is the first attempt to call the attention of financial reporting scholars to the area of communication through studying the credibility of communication and its effects on the successfulness of communication process. Also, the paper contributes to the debate relating to the understanding of the factors and dimensions of comprehensive credibility that includes all parties involved in the financial reporting communication process.
Keywords: Financial Reporting, Communication, Source
Credibility
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