ACCT20074 - JB Hi-Fi's Profit Downgrade: Applying Stakeholder Theory

This assignment analyzes JB Hi-Fi's decision to release its profit downgrade using Classical Political Economy Theory and the Managerial branch of Stakeholder Theory. It explains Institutional Theory and provides evidence from the case study to support the observations. The analysis covers the impact of competition in the home appliance industry, the application of institutional theory to maintain legitimacy, and the use of stakeholder theory in making reporting decisions to meet stakeholder expectations, particularly those of powerful stakeholders like the ASX. The assignment also discusses how JB Hi-Fi's decisions align with ethical governance principles and materiality guidelines, demonstrating an understanding of the theoretical frameworks and their practical application in corporate financial reporting.