Strategy and business model disclosures in annual reports: The role of legal regime

Vasiliki Athanasakou, Abdlmutaleb Boshanna, Natalia Kochetova, George Voulgaris

Research output: Contribution to journalArticlepeer-review


We examine the role of legal regime in the use and usefulness of management disclosures relating to firm strategy and the business model (SBM disclosures). We conduct our analysis in the bijural Canadian setting, where firms operate under either common law (CL) or French Civil law (FCL), depending on where they are headquartered. We find that SBM disclosures vary in length and usefulness across legal regimes. Quebec firms operating under a FCL legal regime produce less extensive SBM disclosures, but such disclosures have a more pronounced information asymmetry-reducing effect, as compared to those of firms operating in CL jurisdictions. Our analysis introduces legal liability risk related to the legal regime as an additional factor that shapes SBM disclosures in the annual reports. Our findings can be of interest to the IASB and the national accounting standard setters as they develop SBM disclosure-related implementation guidance across various jurisdictions.
Original languageEnglish
Article number101190
JournalThe British Accounting Review
Early online date16 Feb 2023
Publication statusE-pub ahead of print - 16 Feb 2023


  • Canada
  • Corporate Disclosures
  • Information asymmetry
  • Legal Regime
  • Strategy and business model reporting


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