Integrated Reporting Quality: An Analysis of Key Determinants

PurposeThe aim of this study is to analyze the possible relationship between board characteristics and integrated reporting quality in an international setting.Design/methodology/approachTo test the study's hypotheses, the authors applied linear regressions with a panel data, and the authors collected data from the Thomson Reuters database (ASSET4) and from the annual reports from European companies to analyze data of 253 listed companies selected from the environmental, social and governance (ESG) index between 2010 and 2019.FindingsThe reached empirical results prove to indicate well that both of the board size, independence and diversity appear to have a significantly positive effect on the integrated reporting quality. Noteworthy, also, is the fact that the appointment of an independent nonexecutive chairman is positively associated with the integrated reporting related quality, and holds for firms with a nonindependent chairman.Practical implicationsBeyond the theoretical implications, our study also has several practical implications. These findings are particularly relevant for managers, shareholders, and policymakers. Thus, stakeholders should consider the accuracy of disclosure in determining the optimal reporting strategy (reducing risk estimation, returns' stock volatility, increasing long-term shareholder value and reputation of the firm).Originality/valueThis article is motivated by the low number of works in the context about the corporate social responsibility and sustainability issues. It makes an important contribution to the academic literature by adding to the limited body of research on integrated reporting and corporate governance in an ESG company setting. The study is also important for practitioners seeking to improve the quality of their integrated reports.

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The impact on the cost of equity capital in the effects of integrated reporting quality

Business Strategy and the Environment ◽

10.1002/bse.2384 ◽

2019 ◽

Vol 29 (2) ◽

pp. 519-529 ◽

Cited By ~ 19

Author(s):

Filippo Vitolla ◽

Antonio Salvi ◽

Nicola Raimo ◽

Felice Petruzzella ◽

Michele Rubino

Keyword(s):

Reporting Quality ◽

Equity Capital ◽

Cost Of Equity Capital ◽

Cost Of Equity ◽

Integrated Reporting ◽

The Cost ◽

The Impact

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Integrated reporting, financial reporting quality and cost of debt

International Journal of Accounting and Information Management ◽

10.1108/ijaim-10-2019-0124 ◽

2020 ◽

Vol 28 (3) ◽

pp. 517-534 ◽

Cited By ~ 4

Author(s):

Mohammad Badrul Muttakin ◽

Dessalegn Mihret ◽

Tesfaye Taddese Lemma ◽

Arifur Khan

Keyword(s):

Financial Reporting ◽

Stock Exchange ◽

Reporting Quality ◽

Financial Reporting Quality ◽

Cost Of Debt ◽

Inverse Association ◽

Integrated Reporting ◽

Financial Reports ◽

Content Type ◽

Debt Market

Purpose Although proponents of integrated reporting (IR) advocate that this emerging practice has the potential to transform corporate reporting, the eventuation of this expectation would depend on the incentive IR provides to firms. This study aims to examine whether IR is associated with cost of debt and whether IR moderates the relationship between financial reporting quality and cost of debt. Design/methodology/approach Based on insights drawn from information asymmetry and agency theories, the authors develop models that link IR and financial reporting quality with a firm’s cost of debt. The authors analyze 847 firm-year observations drawn from non-financial firms traded on the Johannesburg Stock Exchange, for the period between 2009 and 2015. Findings The authors find that firms that provide integrated reports tend to have a lower cost of debt than those do not provide IR. The authors also find an inverse association between financial reporting quality and cost of debt, and that integrated reports accentuate this association. The findings suggest that the debt market perceives value in the information presented in integrated reports beyond what is furnished in financial reports. Originality/value To the best of the authors’ knowledge, this study is the first to document evidence suggesting that the debt market perceives value in the information presented in integrated reports, beyond what is furnished in financial reports.

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Integrated reporting and financial performance of South African listed banks

Banks and Bank Systems ◽

10.21511/bbs.14(2).2019.11 ◽

2019 ◽

Vol 14 (2) ◽

pp. 128-139 ◽

Cited By ~ 2

Author(s):

Reon Matemane ◽

Rozane Wentzel

Keyword(s):

Financial Performance ◽

South African ◽

Significant Relationship ◽

Quantitative Methods ◽

Value Added ◽

Reporting Quality ◽

Financial Statements ◽

Least Square ◽

Integrated Reporting ◽

Reporting Practices

The recent development of integrated reporting intends to address the limitations associated with corporate reporting practices. This paper aims to examine whether a statistically significant relationship exists between integrated reporting quality and financial performance. Secondary data was used, namely the integrated reports and annual financial statements of South African banks listed on the Johannesburg Stock Exchange (JSE) for 2010–2014. For the period 2005–2009, only the financial statements were used, since integrated reporting was not yet mandatory. The research design was longitudinal and it combined qualitative and quantitative methods. Descriptive statistics and Feasible Generalized Least Square (FGLS) were used to explore the relationships between financial performance and integrated reporting quality. The results indicate that there is a positive relationship between integrated reporting quality (IRQ) and earnings per share (EPS). However, there is no significant relationship between IRQ and Tobin’s q (Q-Ratio), IRQ and return on equity (ROE), IRQ and return on assets (ROA) as well as IRQ and economic value added (EVA). Moreover, there are no significant differences on the financial performance of the listed banks before and after the introduction of integrated reporting.

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The Factors of Integrated Reporting Quality: A Meta-Analysis

SSRN Electronic Journal ◽

10.2139/ssrn.3940094 ◽

2021 ◽

Author(s):

Madalina Dumitru ◽

Voicu D. Dragomir

Keyword(s):

Meta Analysis ◽

Reporting Quality ◽

Integrated Reporting

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The determinants of integrated reporting quality in financial institutions

Corporate Governance ◽

10.1108/cg-07-2019-0202 ◽

2020 ◽

Vol 20 (3) ◽

pp. 429-444 ◽

Cited By ~ 8

Author(s):

Filippo Vitolla ◽

Nicola Raimo ◽

Michele Rubino ◽

Antonello Garzoni

Keyword(s):

Financial Institutions ◽

Civil Law ◽

Reporting Quality ◽

Financial Industry ◽

Financial Leverage ◽

Integrated Reporting ◽

Content Type ◽

Law System ◽

The Impact ◽

Civil Law System

Purpose This study aims to investigate the financial and country-level determinants of integrated reporting quality in the financial industry. Specifically, this study analyses the impact of profitability, size, leverage and civil law system on the integrated reporting quality. Design/methodology/approach Hypotheses were tested using a regression model on a sample of 87 financial institutions. An integrated reporting (IR)-quality scoreboard was used to measure report quality. Findings The results show that IR quality is significantly and positively influenced by profitability, size, financial leverage and the civil law system. Practical implications The results have particularly important implications for large, profitable financial institutions that make greater use of financial leverage and that are localized in non-civil law countries. Managers should increase transparency by expanding the content and quality of the information contained in the integrated reports. Originality/value This study contributes to the literature by revealing several financial factors that influence IR quality. To the best of the authors’ knowledge, this is the first study to investigate IR quality in the context of the financial industry.

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