ABSTRACT

This chapter examines the legislative background to summary financial statements and the earlier studies which had been concerned with private shareholders reactions to the full report and accounts. Summary financial statements are not unique to fully listed companies as, under the Building Societies Act 1986, such documents must be sent by building societies to their members and other certain parties 21 days before the annual general meeting. The extension of the survey to other companies would permit a comparative analysis to be conducted which would provide greater insight into the impact of the abbreviation of financial information. The greatest number of respondents, 346 identified knowing the amount of the dividend as an important function of the Annual Review for them. Interestingly 339 selected assessment of the performance of the company as important. The expectations of the shareholders receiving the Annual Review were the subject of the first question on the questionnaire.