Value Relevance of Integrated Reporting Using a Novel Approach: Evidence from South Africa

2018 ◽  
Author(s):  
FJ Mohaimen
Keyword(s):  
South Africa ◽  
Value Relevance ◽  
Integrated Reporting ◽  
Novel Approach

The trend of integrated reporting practice in South Africa: ceremonial or substantive?

2016 ◽  
Vol 7 (2) ◽  
pp. 190-224 ◽  
Author(s):  
Abdifatah Ahmed Haji ◽  
Mutalib Anifowose
Keyword(s):  
South Africa ◽  
South African ◽  
Integrated Reporting ◽  
Content Type ◽  
Reporting Practices ◽  
Trade Offs ◽  
Novel Approach ◽  
Determination Process ◽  
International Integrated Reporting Council

Purpose The purpose of this paper is to examine the trend of integrated reporting (IR) practice following the introduction of an “apply or explain” IR requirement in South Africa. In particular, the authors examine whether the IR practice is ceremonial or substantive in the context of a soft regulatory environment. Design/methodology/approach By way of content analyses, the authors examine the extent and quality of IR practice using an IR checklist developed based on normative understanding of existing IR guidelines. The evidence is drawn from 246 integrated reports of large South African companies over a three-year period (2011-2013), following the introduction of IR requirement in South Africa. Findings The results show a significant increase in the extent and quality of IR practice. The findings also reveal significant improvements in individual IR categories such as connectivity of information, materiality determination process and reliability and completeness of the integrated reports. However, despite the increasing trend and evidence of both symbolic and substantive IR practice, the authors conclude that the current IR practice is largely ceremonial in nature, produced to acquire organisational legitimacy. Practical implications For academics, the authors argue that there is a need to move away from the “what” and “why” aspects of the IR agenda to “how” IR should work inside organisations. In particular, academics should engage with firms through interventionist research to help firms implement integrated thinking and substantive reporting practices. For organisations, the findings draw attention to specific aspects of IR that require improvement. For policymakers, the study provides evidence based on the developmental stage of IR practice and draws attention to certain areas that need clarification. In particular, the International Integrated Reporting Council and Integrated Reporting Committee of South Africa should provide detailed guidelines on connectivity of information, material issues and disclosure of multiple capitals and their trade-offs. Finally, for educators, in line with the ACCA’s embedment of IR in its accounting courses, there is a need to incorporate IR in the curriculum; in particular, the authors argue that the best way to advance IR is in a “ubiquitous” spread in accounting and management courses. Originality/value This study provides empirical account of IR practice over time in the context of a regulatory IR environment. The construction of an IR checklist developed based on normative understanding of local and international IR guidelines is another novel approach of this study.

scholarly journals Value Relevance of Integrated Reporting using a Novel Approach: Comparative Cross Country Evidence of Mandatory and Voluntary Implementers

2021 ◽  
Author(s):  
◽  
FJ Mohaimen
Keyword(s):  
Linear Model ◽  
Value Relevance ◽  
Explanatory Power ◽  
Accounting Information ◽  
Additive Models ◽  
Integrated Reporting ◽  
Novel Approach ◽  
Cross Country ◽  
Log Linear ◽  
Reporting Environment

<p>This thesis examines the value relevance of accounting information under integrated reporting (IR) in a comparative mandatory and voluntary setting. A meta review is conducted of all published work focusing on integrated reporting since 2011, which provides detailed insight into the gaps in the IR literature. Multiplicative log-linear model is used in measurement, which is a novel technique that mitigates the shortcomings of traditional value relevance models. The findings show that value relevance of summary accounting information increases after the implementation of IR in the mandatory setting. In the voluntary setting, market effect and the existing reporting paradigm effect the value relevance of accounting information under IR. If the market is large and existing reporting requirements are robust voluntary adoption of IR has minimal to no effect. However, in smaller markets with less rigorous reporting environment, adoption of IR does result in increased value relevance of accounting information. Compared to traditional models, the multiplicative model provides estimates that are more stable over time and shows better explanatory power. Overall, the findings of this thesis show that capital providers value the information content of IR under specific circumstances. This thesis contributes to the IR and value relevance literature by providing the first comparative cross-country evidence of the effect of IR in the change in value relevance of reported accounting information. It provides policy relevant input to the standard setters of IR by demonstrating the effect of IR in the decision usefulness of summary accounting information. The thesis further provides robust evidence of the efficacy of using the multiplicative log-linear model in measuring value relevance instead of the traditional linear additive models.</p>

scholarly journals Value Relevance of Integrated Reporting using a Novel Approach: Comparative Cross Country Evidence of Mandatory and Voluntary Implementers

2021 ◽  
Author(s):  
◽  
FJ Mohaimen
Keyword(s):  
Linear Model ◽  
Value Relevance ◽  
Explanatory Power ◽  
Accounting Information ◽  
Additive Models ◽  
Integrated Reporting ◽  
Novel Approach ◽  
Cross Country ◽  
Log Linear ◽  
Reporting Environment

<p>This thesis examines the value relevance of accounting information under integrated reporting (IR) in a comparative mandatory and voluntary setting. A meta review is conducted of all published work focusing on integrated reporting since 2011, which provides detailed insight into the gaps in the IR literature. Multiplicative log-linear model is used in measurement, which is a novel technique that mitigates the shortcomings of traditional value relevance models. The findings show that value relevance of summary accounting information increases after the implementation of IR in the mandatory setting. In the voluntary setting, market effect and the existing reporting paradigm effect the value relevance of accounting information under IR. If the market is large and existing reporting requirements are robust voluntary adoption of IR has minimal to no effect. However, in smaller markets with less rigorous reporting environment, adoption of IR does result in increased value relevance of accounting information. Compared to traditional models, the multiplicative model provides estimates that are more stable over time and shows better explanatory power. Overall, the findings of this thesis show that capital providers value the information content of IR under specific circumstances. This thesis contributes to the IR and value relevance literature by providing the first comparative cross-country evidence of the effect of IR in the change in value relevance of reported accounting information. It provides policy relevant input to the standard setters of IR by demonstrating the effect of IR in the decision usefulness of summary accounting information. The thesis further provides robust evidence of the efficacy of using the multiplicative log-linear model in measuring value relevance instead of the traditional linear additive models.</p>

scholarly journals A global assessment of the potential distribution of naturalized and planted populations of the ornamental alien tree Schinus molle

NeoBiota ◽  
2021 ◽  
Vol 68 ◽  
pp. 105-126
Author(s):  
Jorge E. Ramírez-Albores ◽  
David M. Richardson ◽  
Valdir M. Stefenon ◽  
Gustavo A. Bizama ◽  
Marlín Pérez-Suárez ◽  
...  
Keyword(s):  
South Africa ◽  
Potential Distribution ◽  
Natural Populations ◽  
High Survival ◽  
Ecological Processes ◽  
Coverage Area ◽  
Schinus Molle ◽  
Novel Approach ◽  
The World ◽  
Dry Climates

The Peruvian Peppertree (Schinus molle L.) is an evergreen tree native to semiarid environments of Peru and Bolivia in South America. This tree has been introduced and widely planted for ornamental and forestry purposes in several semiarid regions of the world because its seedlings are easily established and have a high survival rate; it also grows quickly, and it is tolerant of dry climates. We compared the global and regional niches of naturalized and planted populations of S. molle in order to examine the invasive stages and potential distribution of this species in four regions of the world. This work provides a novel approach for understanding the invasion dynamics of S. molle in these areas and elucidates the ecological processes that bring about such invasions. Most naturalized and planted populations were found to be in equilibrium with the environment. In its native range as well as in Australia and South Africa the models of the coverage area of habitat suitability for natural populations were the highest, whereas the coverage area of planted populations was lower. For planted populations in Australia and South Africa, a large percentage of predicted presences fell within sink populations. The invasion stages of S. molle vary across regions in its adventive range; this result may be attributable to residence time as well as climatic and anthropic factors that have contributed to the spread of populations.

The Integrated Reporting Committee of South Africa

2020 ◽  
pp. 37-66
Author(s):  
Leigh Roberts ◽  
Wayne van Zijl ◽  
Dannielle Cerbone
Keyword(s):  
South Africa ◽  
Integrated Reporting

Exploring the implications of integrated reporting on organisational reporting practice

2016 ◽  
Vol 13 (4) ◽  
pp. 415-444 ◽  
Author(s):  
Abdifatah Ahmed Haji ◽  
Dewan Mahboob Hossain
Keyword(s):  
South Africa ◽  
Impression Management ◽  
Integrated Reporting ◽  
Content Type ◽  
Regulatory Authorities ◽  
Reporting Practice ◽  
Trade Offs ◽  
Academic Researchers ◽  
Management Techniques ◽  
Over Time

Purpose The purpose of this paper is to examine “how” the adoption of integrated reporting (IR), and the embedded multiple capitals framework, has influenced organisational reporting practice. In particular, the paper examines how companies report and integrate multiple capitals in various organisational reporting channels following the introduction of an “apply or explain” IR requirement in South Africa. Design/methodology/approach Using a qualitative case study approach based on discourse analysis, this paper examines various organisational reports including integrated reports, standalone sustainability reports, websites and other online materials of highly regarded, award-winning, integrated reporters in South Africa over a four-year period (2011-2014), following the introduction of IR requirement. The authors draw five impression management techniques, namely, rhetorical manipulation, thematic manipulation, selectivity, emphasis in visual presentation and performance comparisons to explain disclosure and integration of multiple capitals. Findings The authors find that companies are increasingly conforming to reporting language espoused in existing IR guidelines and multiple capital frameworks over time. For instance, it is found that the research cases have increasingly used specific grammars in existing IR guidelines such as “capitals” and “material” issues, with companies acknowledging the “interdependencies” and “trade-offs” between multiple capitals. Companies have also started to recognise that the capitals are subject to “increases, decreases, and transformations” over time. However, the disclosures are generic, rather than company-specific, and lack substance, often framed in synthetic charming aimed to showcase adoption of IR practice. In addition, the current discourse on multiple capital disclosures is one of the defending, even promoting, organisational reputation, rather than recognising how organisational actions, or inactions, impact multiple capitals. The paper concludes that the emerging IR practice, and the embedded multiple capital framework, has not really improved the substance of organisational reports. Practical implications The results of this study have a number of implications for regulatory authorities, public and private sector organisations as well as academic researchers. For regulatory authorities, the results inform relevant regulatory authorities how IR practice is taking shape over time, particularly within the context of a regulatory setting. Second, the empirical analyses, which focused on highly regarded, award-wining, integrated reporters, draw the attention of regulatory bodies as well as users of corporate reports to concerns related to a growing number of rating agencies of organisational reports. Finally, for academic researchers, the theoretical implications of this study is that, given the pervasive use of multiple impression management techniques in various organisational reports, the authors support the notion that corporate disclosure practices should be examined through the lens of multiple theoretical perspectives to enhance our understanding of the nature of organisational reporting practice. Originality/value This study provides a more focused preliminary empirical account of the implications of IR practice, and the embedded multiple capital frameworks, on the quality of organisational reporting practice following the adoption of mandatory IR requirement in South Africa.

scholarly journals Does integrated reporting enhance the value relevance of organizational capital? Evidence from the South African context

2019 ◽  
Vol 20 (5) ◽  
pp. 642-661 ◽  
Author(s):  
Maroua Tlili ◽  
Hakim Ben Othman ◽  
Khaled Hussainey
Keyword(s):  
South African ◽  
Financial Reporting ◽  
Quantitative Methods ◽  
Value Relevance ◽  
South African Context ◽  
Organizational Capital ◽  
The South ◽  
Integrated Reporting ◽  
Content Type ◽  
African Context

Purpose Despite the growing literature on integrated reporting (IR) adoption and the emphasis on integrated thinking capitals, prior research works only focused on the financial and non-financial reporting rather than the cornerstones of IR. In order to fill this gap, the purpose of this paper is to investigate the value relevance of organizational capital (OC) after the mandatory adoption of IR in South Africa over the period 2006–2015. Design/methodology/approach The authors have used quantitative methods to test the hypotheses. The South African context is unique since the Johannesburg Stock Exchange is the first to mandate listed firms to adopt IR following King III report in March 2010. Findings The findings provide the first evidence, to the best of the authors’ knowledge, on the positive and significant impact of IR adoption on the value relevance of OC. Originality/value The authors contribute to IR literature by providing new insight on the value relevance of one capital from a new perspective addressing the importance of resources as inputs to the business model highlighted by integrated thinking in the IR framework. The findings derive various implications for the International Integrated Reporting Council, managers, decision makers and the research community.

Evaluating the Adequacy of Water-Related Reporting and Disclosure by High-Impact users in South Africa

2016 ◽  
Vol 18 (01) ◽  
pp. 1650003 ◽  
Author(s):  
Marthinus Jacobus Botha ◽  
Sanlie. L. Middelberg
Keyword(s):  
South Africa ◽  
Theoretical Background ◽  
High Impact ◽  
Global Reporting Initiative ◽  
Integrated Reporting ◽  
Socially Responsible ◽  
Responsible Investment ◽  
Reporting Practices ◽  
Disclosure Requirements

South Africa is facing a water crisis in terms of the scarcity and the quality of its water. Considering this water-constrained future, it is evident that companies in South Africa should pay attention to the pristine management and reporting of this scarce resource. The purpose of this paper is to evaluate the reporting and disclosure requirements of water of Socially Responsible Investment-indexed (SRI-indexed) JSE-listed companies. The disclosure requirements of integrated reporting, King III, the Global Reporting Initiative (GRI) and the Association of Chartered Certified Accountants (ACCA) provided the theoretical background. Content analysis was used as the research method to analyse the integrated reports of high-impact users. The findings of the study include that most of the companies illustrate commitment towards water stewardship by reporting on water-related aspects. A more comprehensive standardised set of guidelines to report on water per sector could add value to the reporting practices of companies.

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