scholarly journals How integrated is Integrated Reporting? From a Malaysian Perspective

2021 ◽  
Vol 1 (1) ◽  
pp. 17
Author(s):  
Benedict Valentine Arulanandam ◽  
Yan Ran Lee
Keyword(s):  
Financial Reporting ◽  
Common Ground ◽  
Stock Exchange ◽  
Listed Companies ◽  
Reporting Guidelines ◽  
Integrated Reporting ◽  
Iso 26000 ◽  
Standards And Guidelines ◽  
International Integrated Reporting Council ◽  
Asset Size

The lack of coherence, transparency and accountability in traditional financial reporting, led the International Integrated Reporting Council (IIRC) to developed Integrated Reporting (IR) in 2010.  This study draws the attention towards the top 50 public listed companies listed in Malaysian Stock Exchange as per asset size, and their fulfilment towards voluntary IR disclosures. This study is also conducted to examine the organisational characteristics that foster the IR initiative. Most of the Malaysian PLCs are complied with ISO 26000 standards and GRI G4 guidelines. The compliance of these both standards and guidelines are contributing to the adoption of IR as there are all inter-related. A comparison has been made among ISO 26000, GRI G4 and IR framework to develop a common ground for the non-financial reporting frameworks and guidelines. This study is qualitative and descriptive in nature. The findings reveal that although there were traces of the fulfilment of all requirements with regard to ISO 26000, which was 32% and GRI and IR was 12% respectively, there were much to be done to encourage PLCs to incorporate such reporting guidelines.  It was also found that, government-linked companies have greater fulfilment of these requirements.

Integrated reporting and board characteristics: evidence from top Australian listed companies

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mohamed Omran ◽  
Dinesh Ramdhony ◽  
Oren Mooneeapen ◽  
Vishaka Nursimloo
Keyword(s):  
Firm Size ◽  
Gender Diversity ◽  
Listed Companies ◽  
Board Independence ◽  
Integrated Reporting ◽  
Growth Opportunities ◽  
Content Type ◽  
Board Characteristics ◽  
International Integrated Reporting Council ◽  
Practical Implications

PurposeDrawing upon agency theory, this study analyses the influence of board characteristics on integrated reporting (IR) for the top 50 companies listed on the Australian Securities Exchange (ASX50). Focus is placed on IR at the aggregate level as well as its separate components, namely Future Opportunities and Risks (FOPRI), Governance and Strategy (GOVSTR), Performance (PERF), Overview and Business Model (OBM) and General Preparation and Presentation (GPP).Design/methodology/approachA checklist is devised based on the IIRC (International Integrated Reporting Council) framework to track companies' disclosures for the period from 1st July 2014 to 30th June 2017. Regression analysis is used to investigate the determinants (board size, board independence, activity of the board, gender diversity, firm size, profitability and growth opportunities) of IR and its separate components.FindingsThe findings indicate a significant and positive effect of board independence on the aggregate IR index, FOPRI and GPP. A negative and significant association is found between activity of the board and both the aggregate IR index and its separate components, including GOVSTR, PERF and GPP. Additionally, the aggregate IR index is significantly related to firm size, profitability and growth opportunities.Research limitations/implicationsThe limited sample of 50 companies over three years is the main limitation of the study. The study suffers from an inherent limitation from the use of content analysis in assessing the level of IR. No checklist to measure the level of IR can be fully exhaustive. Furthermore, we focus on whether an item in the checklist is disclosed, using a dichotomous scale, thus ignoring the quality of information disclosed.Practical implicationsThe study has several practical implications. From a managerial perspective, it shows that having more board meetings harms the level of IR. The results can guide regulators, such as the Australian Securities and Investment Commission (ASIC) and the Australian Securities Exchange (ASX), when drafting new regulations/guidelines/listing rules. If regulators aim for a higher level of integration in the reports, they know which “triggers to pull” to attain their target. Our results can guide regulators to choose the appropriate trigger among various alternatives. For instance, if a higher level of integrated reporting is desired, size instead of profitability should be chosen. Finally, ASX listed companies can use our checklist as a scorecard for their self-assessment.Originality/valueThis research is the first to investigate IR by devising a checklist based on IIRC (2013) along with an additional GPP component in the ASX context. Using separate models to examine each component of the aggregate IR index is also unique to this study. The study also brings to the fore the role of gender-diverse boards in promoting IR. It reiterates the debate about imposing a quota for better gender representation on boards.

Integrated reporting, financial reporting quality and cost of debt

2020 ◽  
Vol 28 (3) ◽  
pp. 517-534 ◽  
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.

scholarly journals Research on the accounting quality of public listed companies at the Budapest Stock Exchange

2018 ◽  
Vol 2018 (99 (155)) ◽  
pp. 165-186
Author(s):  
Gábor Tóth ◽  
Zsuzsanna Széles
Keyword(s):  
Financial Reporting ◽  
Stock Exchange ◽  
Evaluation Model ◽  
Evaluation Process ◽  
Financial Statements ◽  
Listed Companies ◽  
Accounting Quality ◽  
Consolidated Financial Statements ◽  
Private Companies ◽  
Accounting Principles

The operation of a financial reporting system is very expensive. In all areas where costs arise, it is important to examine whether the benefits exceed the costs or not. The objectives of financial reporting in Hungary are specified by Act C of 2000 on Accounting (HLA). In this paper, we will show these objectives and the defined accounting principles, as well. With the help of previous research, we have reviewed how accounting quality is measured. The aim of this research is to examine the difference in accounting quality between the publicly listed and private companies in Hungary and develop an evaluation process that takes due account of the complexity of the topic. To this end, we studied the separate (non-consolidated) financial statements of 63 Hungarian com- panies during the period of 1998-2016. Forty-seven percent of the statements were disclosed by public companies and fifty-three percent were disclosed by private companies. The examined financial statements were prepared in accordance with the HLA. To evaluate the data, we examined accruals, timely loss recognition, the vola- tility of earnings, cash flow and earnings management towards target. To summarize the results, we developed an evaluation model which is based on the basic accounting principles and the above-mentioned methods. We found that publicly listed companies have higher accounting quality compared to private companies.

scholarly journals Corporate Environmental Reporting on the Web – An Exploratory Study of Chinese Listed Companies

2007 ◽  
Vol 1 (1) ◽  
pp. 91 ◽  
Author(s):  
Tianxi Zhang ◽  
Simon S. Gao ◽  
Jane J. Zhang
Keyword(s):  
Financial Reporting ◽  
Listed Companies ◽  
Environmental Reporting ◽  
Corporate Behavior ◽  
Reporting Practices ◽  
Developed Economies ◽  
Chinese Listed Companies ◽  
Standards And Guidelines ◽  
Corporate Environmental Reporting ◽  
Corporate Social

While the literature has given a considerable attention to internet financial reporting, limited studies mainly from developed economies have emerged to explain and predict corporate behavior relating to corporaten environmental reporting on Websites. This preliminary study attempts<br />to fill a gap by investigating Internet environmental reporting (IER)<br />in China and examining the current IER practice of Chinese top listed companies. This study finds that IER is increasingly used in China to disclose corporate social and environmental activity and policy. Companies are increasingly using the phrases of „sustainability‟ and „corporate social responsibility‟ in their IER. Website-specific reporting concerning social and environmental issues, performance and activities has growingly been adopted by Chinese top listed companies as the main approach to IER. Both the quantity of disclosure and the areas of coverage have steadily<br />increased. While IER in China is developing, there remains a considerable discrepancy in terms of reporting practices and the levels of social and environmental information disclosed. There are no generally accepted standards and guidelines for IER in China, and the data/information disclosed are largely incomparable. External auditing of IER remains a problem.<br /><br />

scholarly journals Influence of integrated reporting ratings, CEO age, and years of experience on the share price of top 106 JSE listed companies

2016 ◽  
Vol 14 (3) ◽  
pp. 216-231 ◽  
Author(s):  
Patient Rambe ◽  
Tonderayi B. Mangara
Keyword(s):  
South African ◽  
Business Models ◽  
Stock Exchange ◽  
Listed Companies ◽  
Share Price ◽  
Years Of Experience ◽  
Integrated Reporting ◽  
African Countries ◽  
Corporate Reporting ◽  
The Impact

Integrated corporate reporting (ICR), which entails the process of compiling, documenting and reporting on company’s resources, its ongoing relationships with key stakeholders; business models; products (services); and the impact of such products (or services) on stakeholders, society, as well as the environment to optimize company value, has generated considerable interest among top 100 Johannesburg Stock Exchange (JSE) listed companies in South Africa over the last decade. Despite the surging interest in ICR to leverage the social responsibility, transparency and public accountability of companies in the developing African countries, little is known about the combined influence of ICR and internal company resources and/ capabilities (e.g., age and experience of the Chief Executive Officer (CEO)) on the performance of South African listed companies. The main objective of this study, therefore, is to examine the impact of Integrated Reporting Ratings (IRR); the company CEO’s age; and his/her years as a CEO on the share price of the company within the South African context. The top-106 JSE listed companies for the period Year-end 2014 constitute the sample for this study. Multivariate non-parametric regression is used to model the relationship between the predictor (i.e., independent) variables and the response (i.e., dependent) variable using MATLAB. The model developed in this study is, then, used to evaluate the impact of IRR; the CEO’s age and years of experience as CEO on the share price of individual companies. The proposed methodology is illustrated step-by-step. The finding of the study reveal that the share price of a company tended to increase with an increase in IRR, age and years of experience of the CEO, demonstrating that a company’s established history in integrated reporting and corporate experience positively impact its performance (i.e., the share price). Keywords: integrated corporate reporting, corporate responsibility, JSE listed companies, MATLAB. JEL Classification: G17

scholarly journals Earning Management AND International Financial Reporting Standard (IFRS) Implementation Process: Empirical Study

2020 ◽  
Vol 9 (2) ◽  
pp. 603
Author(s):  
Omar Alhawatmeh
Keyword(s):  
Empirical Study ◽  
Financial Reporting ◽  
Stock Exchange ◽  
Implementation Process ◽  
Listed Companies ◽  
Earning Management ◽  
Reporting Standard ◽  
International Financial Reporting Standard ◽  
Amman Stock Exchange ◽  
Jones Model

This research came for studying the implementation IFRSs and its impact on earning management in Jordan .The data onto analysis will be the  listed companies of Amman Stock Exchange (ASE) for period is from 2001-2018, and to find value earning management (EM), we used modified Jones model .the result shows the implementation IFRS have negatively effects on earning management.

scholarly journals An exploratory study of the effect of country-by-country reporting ambiguities on Johannesburg Stock Exchange-listed companies

2018 ◽  
Vol 21 (1) ◽  
Author(s):  
Cara Thiart ◽  
George F. Nel
Keyword(s):  
South Africa ◽  
Financial Reporting ◽  
Multinational Enterprises ◽  
Stock Exchange ◽  
Listed Companies ◽  
Annual Reports ◽  
Reporting Standards ◽  
Financial Reporting Standards ◽  
Johannesburg Stock Exchange ◽  
Group Structures

Background: South Africa issued regulations implementing country-by-country (CbC) reporting standards for multinational enterprises (MNEs) on 23 December 2016. Country-by-country reporting will be applicable to all MNEs with a group revenue in excess of R10 billion. Aim: The aim of the study was twofold: to identify ambiguities that might influence the filing obligation and subsequent scope of CbC reporting in South Africa and to quantitatively measure the potential impact of any identified ambiguities. Setting: This study used data from Johannesburg Stock Exchange-listed companies. Methods: The study commences with a review of the relevant regulations and other applicable literature and continues with a quantitative analysis exploring alternative interpretations deduced from this review. Results: The review identified conflicting interpretations of how companies can be categorised as an MNE Group or not, as well as in measuring the revenue threshold. An analysis of the group structures and annual reports of a selected sample of 78 companies showed that the scope of CbC reporting will depend on the definitions applied to an MNE Group and revenue. Conclusion: Further guidance is needed to determine whether non-controlling entities must be considered as Constituent Entities, as well as how to measure revenue (i.e. whether only the International Financial Reporting Standards [IFRS] 15 revenue line item should be used or whether other income should also be included).

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