This study aimed at offering explanations for the differences observed in the level of disclosure of aspects related to the strategy identified in the annual reports of a sample of companies of the United States, the United Kingdom, France, and Brazil. Three core theoretical elements were connected to explain the variations in the level of disclosure within the sample: cultural dimensions, legal system, and corporate governance. We built a prediction matrix based on the theoretical assumptions and the strategy disclosure was approached in each report through the technique of thematic content analysis. The sample consisted of 73 annual reports of companies of four countries in 2006. The hypotheses were tested through linear regression analysis and non-parametric tests of mean equalities. The results partially supported the hypothesis presented, which states that there is a significant influence from the cultural variables, the legal system, and the corporate governance of each country on the levels of strategy disclosure observed in the annual reports. The most significant differences are related to each country's legal system. The companies of the sample trading in the United States and the United Kingdom, countries that follow a consuetudinary law (Common Law), presented higher levels of strategy disclosure than those trading in France and Brazil, countries that follow the Roman law (Civil Law). This study contributes to the literature on strategy disclosure providing empirical evidence that the legal system does influence on the quantity of strategic information revealed by the open capital companies. However, the process of manual content analysis adopted here is a constraint regarding the sample size.
Disclosure; Strategy; Legal system; Corporate governance; Cultural dimensions
