Financial and non-financial reporting of entities in the real-estate development segment – exploratory study

Purpose: On the grounds of stakeholder theory, agency theory, legitimacy theory, situational conditioning theory or institutional theory, the author formulated the main purpose of the article, which is to study the real estate development industry and gain new knowledge in order to identify good reporting practices. Methodology/approach: The rationale presented justifies the choice of the real estate developer as the object of research. The subject of the study is, adequately to the purpose of the article, the use and importance of financial and non-financial reporting by the entities studied. The basis for the evaluation was a survey on those preparing and drafting the reports in the studied entities. The presentation of the results and their conclusions was preceded by a presentation of the adopted methodological assumptions. The analysis and considerations conducted in the paper, including a critical analysis of the literature and own empirical research, made it possible to positively realize the purpose of the article and allowed the author to solve the research problem. Findings: Conclusions from the research and solutions used in the area of financial and non- financial reporting indicate the need for modification of reports tailored to the characteristics of real estate developers. This would optimize the allocation of the entity’s resources in order to improve reporting and accountability, for example, of management towards stakeholders. It can be concluded that the reporting solutions currently in use are not adapted to the needs and requirements of their stakeholders. Research limitations/implications: The main limitation of the survey is the relatively small number of respondents. However, even with a small sample, a wide range of developer practices could be observed, hence the sample size was not a problem. Originality/value: The new formulas and solutions presented in this work lead to an expansion of previous theoretical knowledge in the field of financial and non-financial reporting of real estate development entities. On the other hand, the empirical research along with the issues proposed in the article have important theoretical and practical implications for the management of the studies entities. Keywords: real estate developer, financial report, non-financial report. Category of the paper: research paper.