scholarly journals INDICES OF ENVIRONMENTAL PERFORMANCE OF THE COMPАNIES FROM THE AUTOMOBILE SECTOR IN THE CONTEXT OF INTEGRATED REPORTING

MEST Journal ◽  
2021 ◽  
Vol 9 (1) ◽  
pp. 207-215
Author(s):  
Desislava Yosifova ◽  
Magdalena Petrova-Kirova
Keyword(s):  
Financial Reporting ◽  
Information Needs ◽  
Global Scale ◽  
Transport Sector ◽  
Social Aspect ◽  
Integrated Reporting ◽  
Negative Effects ◽  
Financial Return ◽  
Corporate Reporting ◽  
Negative Effect

Until very recently business operations were most strongly motivated by the ambition to maximize financial return and the purpose of the corporate accounting statements was to present information mainly on the cash flow, the financial and the asset position, as well as the financial outcome of the company. The development of the world economy and the thereby arising positive and negative effects on society is not fully covered by conventional accounting and financial reporting system. The insufficiency of such information obstructs satisfying the information needs of various interested parties, resulting in growing expectations and pressure over the companies to accept not only the positive, but also the negative effect on their behaviour in the economic, environmental, and social aspect. All of the above prerequisites, along with the capital restriction the companies are facing, require a change towards an appropriate upgrade of traditional corporate reporting. This problem is particularly significant for Bulgaria, which, being a member state of the EU, is expected to apply all European Directives for implementation of environmental requirements essentially related to the transport sector. In addition, the country’s geostrategic position, through which territory 5 of the ten Pan-European transport corridors run through, makes the problems related to the development and the application of methodologies and the toolkit for covering, registering, and reporting the effect of transport companies’ activities (especially those in the automobile sector) on the environment, people, and society as a whole, particularly important. Integrated reporting is ready to face these challenges and to solve a significant part of the problematic fields, which, in complex with the data and the indicators, registered and accounted for by traditional financial reporting, can provide together, to a sufficient and full extent, the demand for information in the implementation of environmental policy on a national, local and global scale.

scholarly journals The Common Good Balance Sheet, an Adequate Tool to Capture Non-Financials?

2019 ◽  
Author(s):  
Christian Felber ◽  
Vanessa Campos ◽  
Joan Ramon Sanchis
Keyword(s):  
Organizational Performance ◽  
Financial Reporting ◽  
Common Good ◽  
Information Needs ◽  
Balance Sheet ◽  
Validity And Reliability ◽  
Integrated Reporting ◽  
The Common Good ◽  
Corporate Reporting ◽  
The Common

In relation to organizational performance measurement, there is a growing concern about the creation of value for people, society and the environment. The traditional corporate reporting does not adequately satisfy the information needs of stakeholders for assessing an organization’s past and future potential performance. Practitioners and scholars have developed new non-financial reporting frameworks from a social and environmental perspective, giving birth to the field of Integrated Reporting (IR). The Economy for the Common Good (ECG) model and its tools to facilitate sustainability management and reporting can provide a framework to do it. The present study is the first one that empirically validates such metrics on a sample of 206 European firms. Consequently, it allows knowledge to advance as it checks their statistical validity and reliability.

scholarly journals Compiling invest-oriented integrated reporting: advantages, standards, recommendations

2021 ◽  
Vol 3 (13 (111)) ◽  
pp. 47-54
Author(s):  
Tetiana Momot ◽  
Maria Karpushenko ◽  
Hanna Sobolieva ◽  
Olena Lytovchenko ◽  
Iryna Filatova
Keyword(s):  
Financial Reporting ◽  
Information Needs ◽  
Social Issues ◽  
Market Value ◽  
Complete Information ◽  
Financial Indicators ◽  
Integrated Reporting ◽  
Corporate Reporting ◽  
Business Operations ◽  
New Concepts

Meeting the information needs of investors interested in acquiring a share of the enterprise, or individual intangible assets, the rights to use them, has led to the search for new concepts and models for compiling reporting information. It is important to know how the technologies used by an enterprise affect the environmental condition, what costs are necessary for personnel training, for staying competitive, etc. Under such conditions, the classic model of financial reporting does not meet modern requirements – it is retrospective in nature. To persuade investors to invest in companies focused on creating value, it is important to compile investment-oriented corporate reporting. This paper reports the devised theoretical and methodological provisions, as well as the substantiation of practical recommendations for compiling investment-oriented integrated reporting, which includes a sequence of activities and a system of indicators for assessing the financial and non-financial components of business operations, including indicators of the environmental and social activities of an enterprise, which ensures the transparency of information in terms of business risks and their management. It is stated that the main goal of investment-oriented corporate reporting is to inform users about increasing the company's market value. Indeed, the reflection of the importance of social and environmental priorities, attention paid and efforts applied made to resolve social issues give confidence in the reliability of business and stimulate the attraction of investment resources. The examples of the companies chosen for this study have proven that the submission of complete information based on the groups of non-financial indicators of integrated reporting is a factor in increasing the market value of the company, and, accordingly, enhancing its investment attractiveness. The devised proposals make it possible to summarize in a single format information about the activities of an enterprise, related risks, and its investment potential

scholarly journals Why “Less is More” in Non-Financial Reporting Initiatives: Concrete Steps Towards Supporting Sustainability

2020 ◽  
Vol 10 (2) ◽  
Author(s):  
Georgina Tsagas ◽  
Charlotte Villiers
Keyword(s):  
Financial Reporting ◽  
Corporate Sustainability ◽  
Sustainability Reporting ◽  
Integrated Reporting ◽  
Less Is More ◽  
Csr Reporting ◽  
Corporate Reporting ◽  
Long Run ◽  
The Individual ◽  
Key Aspects

AbstractCalls are repeatedly made on corporations to respond to the challenges facing the planet from a sustainable development perspective and governments take solace in the idea that corporations' transparency on their corporate activity in relation to sustainability through voluntary reporting is adequately addressing the problem. In practice, however, reporting is failing to deliver truly sustainable results. The article considers the following questions: how does the varied reporting landscape in the field of non-financial reporting impede the objectives of fostering corporations' sustainable practices and which initiative, among the options available, may best meet the sustainability objectives after a decluttering of the landscape takes place?The article argues that the varied corporate reporting landscape constitutes a key obstacle to fostering sustainable corporate behaviour, insofar as the flexible and please all approach followed in the context of corporate sustainability reporting offers little to no real incentive to companies to behave more sustainably and ultimately pleases none in the long run. The case made is that “less is more” in non-financial reporting initiatives and hence the article calls for a revision of key aspects of the European Non-Financial Reporting Directive, which, as is argued, is more likely to achieve the furtherance of sustainable corporate behaviour. Although the different reporting requirements offer the benefits of focussing on different corporate goals and activities, targeting different audiences and allowing for a level of flexibility that respects the individual risks to sustainability associated with each industry, the end result is a landscape that lacks overall consistency and comparability of measurements and accountabilities, making accountability more, rather than less, difficult to achieve.The article acknowledges the existence of several variances relating to the notion of sustainability per se, which continues to remain a contested concept and variances between companies and industries in relation to how each is operating sustainably or unsustainably respectively. Such variances have so far inhibited the legislator from easily outlining through tailored legislation the individual risks to global sustainability in an all-encompassing manner. The end product is a chaotic system of financial reporting, CSR reporting, non-financial reporting and integrated reporting and little progress to increase comparability and credibility in order for companies to be held accountable and to behave in ways that do not harm the planet. A “clean up” of the varied initiatives in the terrain of non-financial reporting is recommended.

It is not always bad news

2018 ◽  
Vol 31 (5) ◽  
pp. 1319-1348 ◽  
Author(s):  
Mary-Anne McNally ◽  
Warren Maroun
Keyword(s):  
Impression Management ◽  
Financial Reporting ◽  
Value Creation ◽  
Sustainability Reporting ◽  
Management Control ◽  
Financial Information ◽  
Accounting System ◽  
Integrated Reporting ◽  
Content Type ◽  
Corporate Reporting

Purpose The purpose of this paper is to challenge the notion that non-financial reporting is mainly about impression management or is only a superficial response to the hegemonic challenges posed by the sustainability movement. It focuses on the most recent development in sustainability reporting (integrated reporting) as an example of how accounting for financial and non-financial information has the potential to expand the scope of accounting systems, promote meaningful changes to reporting processes and provide a broader perspective on value creation. Design/methodology/approach The research focuses on an African eco-tourism company which has its head office in South Africa. A case study method is used to highlight differences in the presentation of an integrated business model according to the case entity’s integrated reports and how individual preparers interpret the requirement to prepare those reports. Data are collected using detailed interviews with all staff members involved in the preparation process. These are complemented by a review of the minutes of the company’s sustainability workshops and integrated reports. Findings A decision by the case organisation to prepare an integrated report gives rise to different forms of resistance which limits the change potential of the integrated reporting initiative. Resistance does not, however, preclude reform. Even when individual preparers are critical of the changes to the corporate reporting environment, accounting for financial and non-financial information expands the scope of the conventional accounting system which facilitates broader management control and promotes a more integrated conception of “value”. Research limitations/implications Integrated reporting should not be dismissed as only an exercise in corporate reporting and disclosure; it has a transformative potential which, given time, can enable new ways of managing business processes and articulating value creation. Originality/value This study answers the calls for primary evidence on how the requirement or recommendation to prepare an integrated report is being interpreted and applied by individual preparers. The findings add to the limited body of interpretive research on the change potential of new reporting frameworks. In doing so, the research provides theoretical support for developing arguments which challenge the conventional position that integrated reporting is little more than an exercise in impression management.

scholarly journals Reshaping Risk Disclosure through Integrated Reporting: Evidence from Italian Early Adopters

2017 ◽  
Vol 12 (10) ◽  
pp. 11 ◽  
Author(s):  
Francesca Manes-Rossi ◽  
Giuseppe Nicolo ◽  
Rebecca Levy Orelli
Keyword(s):  
Content Analysis ◽  
Financial Reporting ◽  
Information Needs ◽  
Bad News ◽  
Business Strategies ◽  
Risk Disclosure ◽  
Integrated Reporting ◽  
Early Adopters ◽  
Extensive Information ◽  
Different Dimensions

The purpose of this paper is to explore Integrated Reporting (IR) and risk disclosure (RD) and demonstrating the interconnection between business strategies and risk. Through a content analysis, the paper explores the management commentary and Integrated reporting of Italian companies at the end of 2015.The study reveals that many of the companies have embedded financial reporting into IR. We find extensive information about risks and opportunities, in relation to the management of the six capitals. The paper represents an investigation into risk disclosure in IR. It adds knowledge to the opportunity offered by IR in meeting stakeholder’s information needs, compared to traditional tools of corporate reporting.The results could be of interest both for legislator and standards setters, to bring them up to date with enhanced disclosure of risk and opportunities which IR offers with respect to the more traditional forms of disclosure.This is the first country-based study investigating risk disclosure provided through IR looking at three different dimensions: the metrics of RD (monetary or non-monetary); the outlook orientation (past, present or future) and the type of risk news (good or bad news). The results are relevant to detect how companies act and what can be done to improve risk disclosure.

scholarly journals Disclosure Style and Its Determinants in Integrated Reports

2019 ◽  
Vol 11 (7) ◽  
pp. 1960 ◽  
Author(s):  
Aureliana-Geta Roman ◽  
Mihaela Mocanu ◽  
Răzvan Hoinaru
Keyword(s):  
Impression Management ◽  
Financial Reporting ◽  
Multivariate Regression Analysis ◽  
Annual Reports ◽  
Integrated Reporting ◽  
Financial Reporting Standards ◽  
Corporate Reporting ◽  
Environmentally Sensitive ◽  
Set Up ◽  
International Integrated Reporting Council

Integrated Reporting promotes a more cohesive and efficient approach to corporate reporting and aims to improve the quality of information available to providers of financial capital. The purpose of this paper was to investigate the determinants of readability and optimism which build the disclosure style of integrated reports. Our research draws on impression management theory and legitimacy theory, while also taking into consideration the cultural system of Hofstede with its further developments by Gray. Our sample consisted of 30 annual reports, extracted randomly from the Integrated Reporting examples database set up by the International Integrated Reporting Council. For the purposes of our investigation, we have carried out a multivariate regression analysis. Firstly, our results show that the higher the revenues of the reporting company, the more balanced their integrated reports, while younger companies use a more optimistic tone when reporting. Additionally, optimism seems to be inversely correlated with the length of the reports. Secondly, entities based in countries with a stronger tendency towards transparency surprisingly provide less readable integrated reports. It was also revealed that companies operating in non-environmentally sensitive industries, as well as International Financial Reporting Standards adopters deliver foggier and thus less readable integrated reports.

scholarly journals Integrated Reporting as a Tool for Communicating with Stakeholders – Advantages and Disadvantages

2018 ◽  
Vol 35 ◽  
pp. 06004
Author(s):  
Iwona Matuszyk ◽  
Bartosz Rymkiewicz
Keyword(s):  
Comparative Analysis ◽  
Financial Reporting ◽  
Information Needs ◽  
Primary Source ◽  
Financial Data ◽  
Literature Analysis ◽  
Integrated Reporting ◽  
Main Interest ◽  
Advantages And Disadvantages ◽  
Wide Range

Financial and non-financial reporting from the beginning of its existence is the primary source of communication between the company and a wide range of stakeholders. Over the decades it has adapted to the needs of rapidly changing business and social environment. Currently, the final link in the evolution of organizational reporting, such as integrated reporting, assumes integration and mutual connectivity to both financial and non-financial data. The main interest in the concept of integrated reporting comes from the value it contributes to the organization. Undoubtedly, the concept of integrated reporting is a milestone in the evolution of organizational reporting. It is however important to consider whether it adequately addresses the information needs of a wide range of stakeholders, and whether it is a universal tool for communication between the company and its stakeholders. The aim of the paper is to discuss the advantages and disadvantages of the concept of integrated reporting as a tool for communication with stakeholders and to further directions of its development. The article uses the research methods such as literature analysis, the content analysis of the corporate publications and comparative analysis.

scholarly journals Information Needs of an Environmentally Conscious Society regarding the Functioning of Animal Husbandry Enterprises

2020 ◽  
pp. 22-29
Author(s):  
Dmytro Liudvenko ◽  
◽  
◽  
Keyword(s):  
Financial Reporting ◽  
Information Needs ◽  
Public Information ◽  
Animal Husbandry ◽  
Integrated Reporting ◽  
Significant Discrepancy ◽  
Environmentally Conscious ◽  
Study Results ◽  
Business Entities ◽  
Integrated Information

A significant discrepancy between the indicators for assessing the ecological state in Ukraine and global trends is due to shortcomings in the formation of the ecological consciousness of society. One of the ways to improve the ecological situation in the country is to create an effective system of access to public information on the protection of the natural environment. The purpose of the article is to determine the information needs of an environmentally conscious society regarding the functioning of animal husbandry enterprises for the formation of indicators, which provide integrated information about the activities of such enterprises. Today, information on the compliance of the activities of business entities with the requirements of the concept of sustainable development is disclosed in various reporting documents, which led to the formation of integrated reporting. Based on the study results, the system of indicators was formed to provide integrated information on the activities of animal husbandry enterprises. This system includes a number of elements that satisfy the information needs of both internal (employees, owners, in particular shareholders) and external (contractors, product consumers, creditors, investors, government agencies, public organizations) stakeholders. The main directions of the enterprise's activity, which are of the greatest interest to internal and external stakeholders, and are subject to disclosure in non-financial reporting, have been determined. These main directions can be used as the basis for the development of a long-term strategy for the formation of non-financial reporting of such enterprises, which will simplify the preparation of information for its full disclosure. The environmental consciousness of society is gradually growing and there is a high probability that in the near future even potential employees will be interested in the non-financial performance of the enterprise. So, an enterprise's image will grow if it can publish such indicators.

scholarly journals Prerequisites for integrated reporting development

2019 ◽  
pp. 116-126
Author(s):  
Nataliіa Shevchuk
Keyword(s):  
Financial Reporting ◽  
Rational Expectations ◽  
Information Needs ◽  
Comprehensive Evaluation ◽  
Regulatory System ◽  
Financial Statements ◽  
Economic Research ◽  
Accounting System ◽  
Integrated Reporting ◽  
Economic Relations

The article provides an analytical review of the accounting literature and other scientific sources, which allowed highlighting the main stages of the development of financial statements, determining the historical and practical prerequisites for the formation of integrated reporting and outlining the basic requirements for information reporting capabilities. The purpose of the study is the conceptual understanding of the integrated reporting evolvement. General scientific and special economic research methods, such as dialectical and abstract and logical ones are used to systematize available theoretical material to reveal the element of accounting method. Methods of theoretical generalization, analysis and synthesis have been applied to comprehensive evaluation of the stages of financial reporting development. According to the results of the study, significant influence on the development of the integrated model of accounting has led to the development of economic relations, legal foundations of the functioning of the economy, information needs, the evolution of economic theories: new institutional, evolutionary, theory of rational expectations, theory of exhaustive resources, theory of human capital and the application of these theories to management systems. The main problems of the existing financial statements in accordance with the informational expectations of the stakeholders are identified and substantiated. Formation of new approaches to the development of accounting integrated reporting in Ukraine on the basis of consideration the national peculiarities of accounting system of the current regulatory system requires further study. The study of the formation of integrated reporting in the world economy, international initiatives in the field of integrated reporting, in order to implement the best world practices in Ukraine are pivotal.

scholarly journals Board composition, ownership concentration, and voluntary internet disclosure by MSM-listed companies

2014 ◽  
Vol 10 (1) ◽  
pp. 60-70 ◽  
Author(s):  
Mohamed A. K. Basuony ◽  
Ehab K. A. Mohamed
Keyword(s):  
Financial Reporting ◽  
Binary Logistic Regression ◽  
Listed Companies ◽  
Securities Market ◽  
Ownership Concentration ◽  
Binary Logistic Regression Analysis ◽  
Corporate Reporting ◽  
Gcc Countries ◽  
Important Region ◽  
Negative Effect

The purpose of this paper is to examine the determinants and characteristics of voluntary internet disclosures by listed companies in Oman. This paper uses archival data from listed companies on Muscat Securities Market (MSM). Binary Logistic Regression analysis is used to examine the determinants of internet financial reporting. The results of this study reveal that ROA is one of the factors that impacts internet financial reporting. Also, the results reveal that ownership concentration has a negative effect on the internet financial disclosure. The paper provides insights into corporate internet disclosures in the GCC countries that will benefit all stakeholders with an interest in corporate reporting in this important region of the world.

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