The use of accounts in the four major Swedish banks’ accounting narratives – an impression management tool used as a response to negative media attention?

Abstract: Purpose: The purpose of this thesis has been to examine whether accounts have been given by the four major Swedish banks - Swedbank, Handelsbanken, Nordea and SEB - in their accounting narratives as a response to negative media attention in the time period 2009 to 2014, and whether those accounts could be seen as an impression management tool. Methodology: We have carried out a qualitative study on articles published in Swedish web-based media in the time period 2009 to 2014. We have also carried out a qualitative content analysis of the four major Swedish banks’ accounting narratives to identify accounts in the same time period. Theoretical perspective: The theoretical framework of this study is based on theories on media as a powerful stakeholder, Legitimacy theory, Impression Management and Accounts. Empirical foundation: The empirical data includes 139 web-based articles published by six different Swedish media actors in the time period 2009 to 2014. Those articles express criticism raised against the four major Swedish banks’ mortgage margins, dividends, reduced manual cash handling and high levels of remuneration. The empirical data also includes 27 accounts identified in the four major Swedish banks’ accounting narratives in the same time period related to the banks’ mortgage margins, dividends, reduced manual cash handling and high levels of remuneration. We have studied accounting narratives in corporate annual reports, interim reports, sustainability reports and press releases. Conclusion: We have been able to demonstrate that accounts have been given by the four major Swedish banks in their accounting narratives to respond to negative media attention in the time period 2009 to 2014. In Swedbank, we have been able to prove a definite connection between some identified accounts and media attention, and further have found indications that other identified accounts in the other three banks likely are related to negative media attention as well. Overall, Swedbank is highly overrepresented in number of accounts. Most of the identified accounts have been justification accounts. Our findings show that accounts could be seen as an impression management tool the banks can use to handle negative media attention, having the ability to affect accounting narrative readers’ perceptions and neutralize a negative picture given by media. This is one possible way for the banks to reduce or close potential legitimacy gaps arisen due to negative media attention. Further, our findings indicate that media is a powerful stakeholder important for the banks to be able to manage.