Integrating value-added statements in corporate governance: Theory and empirical findings from Germany

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Abstract

The value-added statement (VAS) is a distinctive financial reporting tool designed to reflect the distribution of economic value across multiple stakeholders, including employees, suppliers, and communities, beyond just shareholders. This study explores the application and presentation of VAS within the corporate governance reports of nine large, publicly listed German companies. These firms were selected based on their adherence to the German Corporate Governance Code (GCGC) principles, which prioritize transparency and stakeholder engagement. Analyzing the most recent reports for the fiscal years 2022–2023, we observe that VAS adoption is notably limited, with presentation formats ranging from text-only descriptions to detailed tables and visualizations. The lack of standardized VAS formats may present a barrier to wider adoption, yet the tool holds substantial potential to enhance corporate transparency by aligning financial outcomes with stakeholder interests. Our findings suggest that if standardized, VAS could play an important role in bridging financial reporting with broader accountability objectives, especially as corporate governance increasingly emphasizes stakeholder-inclusive disclosures. This study highlights the need for clear guidelines to support VAS integration, which could foster greater trust and transparency within corporate governance frameworks.

Keywords: Value-Added Statement, Corporate Governance Reporting, Stakeholders, Connectivity

Authors’ individual contribution: Conceptualization — B.B. and P.U.; Methodology — B.B.; Formal Analysis — B.B.; Writing — Original Draft B.B. and P.U.; Writing — Review & Editing — P.U.; Visualization — B.B.; Project Administration — P.U.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: G30, G39, M00

Received: 29.05.2024
Revised: 07.11.2024; 09.01.2025; 14.07.2025
Accepted: 17.07.2025
Published online: 23.07.2025

How to cite this paper: Baltzer, B., & Ulrich, P. (2025). Integrating value-added statements in corporate governance: Theory and empirical findings from Germany. Corporate Governance and Sustainability Review, 9(3), 105–115. https://doi.org/10.22495/cgsrv9i3p8