Taxonomy of Financial Information Users: A Strategic Classification Approach Using Cluster Analysis
Keywords:
User Taxonomy, Financial Information, Cluster AnalysisAbstract
Introduction: International regulatory frameworks have acknowledged the existence of different types of users; however, they have done so in a generic manner without delving into the substantial differences that exist among them in terms of their objectives, analytical capabilities, time horizons, and information needs.
Objective: To propose a taxonomy of financial information users.
Method: A taxonomy of financial information users was designed using the classifications established in the conceptual frameworks of International Financial Reporting Standards (IFRS) and U.S. Generally Accepted Accounting Principles (U.S. GAAP) as a reference. Cluster analysis was conducted by examining the distances between users in order to group those most similar to one another based on the selected distance criteria.
Results: Accounting users comprise a broad and diverse range of stakeholders with an interest in financial information who need to understand companies' economic and financial performance. Given the growing importance of users today and the numerous information needs that characterize them, financial reports must be prepared with the aim of addressing those needs.
Conclusions: To meet users' information needs, one must first understand the diverse group that comprises them. In this study, based on the classification of accounting users established by IFRS and U.S. GAAP, additional categories of users not detailed in those standards were examined. If companies limit themselves to preparing financial reports based solely on the list of users specified in accounting standards, they risk overlooking other relevant groups. As demonstrated in this study, these constitute broader groups involving complex typologies that must be identified in order to adequately address their information needs.
Empirical contribution: Cluster analysis enables the identification of additional groups of accounting stakeholders, thereby expanding the user taxonomy and fostering a deeper, more detailed understanding of these accounting users.
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