Stakeholder Perception on the Usefulness of Annual Reports in Nepal’s Stock Market

Abstract

This study explores stakeholder perceptions regarding the usefulness of annual reports issued by listed companies in Nepal’s stock market. Although such reports are legally mandated and serve as vital tools for corporate disclosure, they often fail to meet the practical needs of diverse users due to complexity, lack of clarity, and low engagement. The research adopted a qualitative descriptive design under the interpretivist paradigm, employing Focus Group Discussions (FGDs) with seven participants from key stakeholder groups, including investors, analysts, auditors, students, policy experts, and company representatives. Thematic analysis, based on Braun and Clarke’s (2006) six-step framework, was used to analyze the data. The study uncovered six central themes: surface-level engagement with reports, comprehension barriers due to technical language, stakeholder-driven suggestions for user-friendly formats, perceived gaps in trust and transparency, influence of external media on investment decisions, and a strong call for financial education and report literacy. These findings indicate a significant disconnect between formal disclosures and stakeholders’ real-world information needs, especially in Nepal’s evolving and digitally influenced capital market. The study offers theoretical implications by extending stakeholder theory with an emphasis on practical engagement and behavioral dimensions. Practically, it suggests the need for visual summaries, simplified formats, and education-based policy interventions. Overall, the research contributes to enhancing the relevance, accessibility, and stakeholder-centricity of financial reporting in emerging economies.