Empirical Study Regarding Non-Financial Disclosure for Social Conscious Consumption in the Spanish E-Credit Market

Abstract

Non-financial disclosure is an objective in The European Union to improve a sustainable economy where consumers can make conscious decisions, especially regarding the role of financial technology. Complete information is considered one that offers financial and non-financial information. Government and supranational authorities are starting to promulgate rules to construct a reasonable framework for non-financial disclosure. One consumer might make a social conscious decision if the information disclosed meets to the Directive 2014/95/UE guidelines. In order to analyse this condition in the e-credit market in Spain, this research measures the rank of compliance of European standards in non-financial disclosure. The main finding of this research is that non-financial information disclosure in the Spanish e-credit market is not sufficient to make informed decisions. Due to the fact that most of the non-financial information is focused on social issues related to a company´s commitment to sustainability, non-financial information plays a relevant role in the building of an economically sustainable society. Our findings show that the level of non-financial disclosure in the Spanish e-Credit market is low, what supposes there is not an adequate informative base to decision making according to European standards on non-financial information. By considering the effect of usual disclosure drivers in this research field, the e-credit market sector was the only positive factor to disclose more non-financial information. Nevertheless, company size, company seniority and company location were not significant factors for non-financial disclosure.