Effects of the Adoption of Integrated Reporting on the Information Needs of Capital Providers: Evidence from Nigeria

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.

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

International Journal of Business and Management ◽

10.5539/ijbm.v12n10p11 ◽

2017 ◽

Vol 12 (10) ◽

pp. 11 ◽

Cited By ~ 16

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.

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

E3S Web of Conferences ◽

10.1051/e3sconf/20183506004 ◽

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.

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

Accounting and Finance ◽

10.33146/2307-9878-2020-4(90)-22-29 ◽

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.

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Prerequisites for integrated reporting development

Herald of Ternopil National Economic University ◽

10.35774/visnyk2019.04.116 ◽

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.

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ORGANIZATION ASPECTS OF THE INTEGRATED REPORTING FORMATION

Financial and credit activity problems of theory and practice ◽

10.18371/fcaptp.v5i40.244906 ◽

2021 ◽

Vol 5 (40) ◽

pp. 110-119

Author(s):

М. Prodanchuk ◽

M. Tripak ◽

L. Hutsalenko ◽

L. Myskiv ◽

N. Shevchuk

Keyword(s):

Information Needs ◽

High Efficiency ◽

Methodological Approach ◽

Jel Classification ◽

Accounting System ◽

Integrated Reporting ◽

The Sustainable Development ◽

Scientific Methods ◽

Practical Activity ◽

Theoretical Generalization

Abstract. Research is aimed at developing theoretical and methodological provisions and creating practical recommendations for the organization of the integrated reporting formation, taking into account the analytical indicators in conditions of growing information needs of users. Main principles and provisions of modern economic theory, theory of accounting and economic analysis, scientific research of domestic and foreign scientists on problems of organization of integrated reporting are the theoretical and methodological basis of the research. General scientific methods were used: deduction and induction, synthesis and analysis, formalization and detailing, comparison and analogy, the method of theoretical generalization to gain the aim of the work and to solve the certain tasks. The result of the research is the development of a scientific and methodological approach for the implementation of integrated reporting in the practical activity of the enterprise. The organization of the integrated report formation will provide the solid background for the business in the form of complex integrated financing and non-financing indicators of the enterprise, which will define the main tools, methods, procedures, observance of basic and additional principles of formation of the system of accounting and analytical information. The mechanism of the organization of the integrated reporting formation as scientific and methodological approach is developed for the implementation of the integrated reporting in the practical activity of the enterprise, which consists of organization stages: the organization of the economic processes of the integrated accounting system; the organization of the accounting support of the integrated reporting formation; the organization of integrated reporting formation. The implementation of proposals in the practical activity of the enterprise will allow: publication of the integrated reporting with the responsibility for the completeness and accuracy of the information on the «Unified portal of integrated reporting of the enterprises and organizations of Ukraine», which will be the background of the sustainable development of business and national economy, social and ecological security of the country. The well-designed mechanism will ensure high efficiency indicators and results of the subjects and protect stakeholders from the risks of obtaining inaccurate or incomplete information or not receiving it at all. Keywords: integrated reporting, organization of the integrated reporting formation, financial and non-financial information, social responsibility of business. JEL Classification O3, Q43, P5 Formulas: 0; fig.: 3; tabl.: 1; bibl.: 15.

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Integrated reporting: perspectives of corporate report preparers and other stakeholders

Sustainability Accounting Management and Policy Journal ◽

10.1108/sampj-02-2018-0043 ◽

2019 ◽

Vol 10 (1) ◽

pp. 126-156 ◽

Cited By ~ 14

Author(s):

Desi Adhariani ◽

Charl de Villiers

Keyword(s):

Southeast Asia ◽

Information Needs ◽

Well Being ◽

Integrated Reporting ◽

Content Type ◽

Quality Reporting ◽

Level Of Knowledge ◽

Low Levels ◽

Asian Economy ◽

High Level

Purpose This paper aims to explore the perspectives of corporate report preparers and other stakeholders on integrated reporting (IR) in a major Southeast Asian economy. Design/methodology/approach A survey is used to explore perspectives on IR. Findings There is a limited level of knowledge regarding IR, but a high level of interest. Corporate report preparers paradoxically state that they can see the benefits of IR, yet they are reluctant to implement it. Practical implications Changes to university curricula, training sessions, seminars and conferences may be needed to disseminate information regarding IR. Social implications IR implementation may be stymied by the low levels of knowledge in Southeast Asia and hence lack of demand from stakeholders. High-quality reporting generally supports capital flows into a region and thus influences economic and social well-being. The integrated financial and non-financial information needs of stakeholders thus have an indirect impact on society. Originality/value Southeast Asia is an economic powerhouse and home to hundreds of millions of people. It is important to understand the potential for IR in this region. This is the first survey of its kind to explore these matters.

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Investment considerations and impressions of integrated reporting

Sustainability Accounting Management and Policy Journal ◽

10.1108/sampj-10-2016-0072 ◽

2018 ◽

Vol 9 (1) ◽

pp. 2-28 ◽

Cited By ~ 5

Author(s):

Pei-Chi Kelly Hsiao ◽

Martin Kelly

Keyword(s):

Private Information ◽

Firm Value ◽

Information Needs ◽

Investment Decisions ◽

Capital Allocation ◽

Structured Interviews ◽

Integrated Reporting ◽

Content Type ◽

Investment Appraisal ◽

Reporting Framework

Purpose Integrated reporting (IR) aims to improve the quality of information available to capital providers. While IR is associated with decreases in investor uncertainty and increases in firm value, it is unclear how IR information directly influences investment decisions. This paper aims to investigate the investment considerations of Taiwanese investors and their initial impressions of the International Integrated Reporting Framework (IIRC Framework). In doing so, this study examines the relationships between investment considerations and the IIRC Framework’s concepts. Design/methodology/approach Semi-structured interviews were undertaken with 16 investors in Taiwan. Thematic analysis was used to analyse the data collected. Findings In addition to economic and financial outlook, competitive advantages and ownership structure, Taiwanese investors emphasise management credibility as an important factor that influences investment decisions. Investors are reliant on private information sources and quantitative data. Sustainability disclosures and sustainability performance beyond legal requirements are often not considered. Taiwanese investors lack awareness of the IIRC Framework and are sceptical about the premise that integrated reports can provide information material to investment appraisal. The assertion that integrated reports reduce information asymmetry and influence investment decisions has to be treated with caution. Research limitations/implications Self-selection bias and a potential lack of transferability in the findings are issues inherent in the research method and sample used. Practical implications IR information needs to be frequently updated rather than disclosed in a periodic report. Furthermore, integrated reports need to demonstrate a direct link between non-financial performance and financial value creation. Social implications Mandating the supply of integrated reports is unlikely to influence investors’ capital allocation decisions unless investor demand is a driver of the regulation. Originality/value This study is one of the few to investigate IR from the investor’s perspective. Observations from this preliminary study warrant further investigations into the relevance of IR to investment communities globally.

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

MEST Journal ◽

10.12709/mest.09.09.01.24 ◽

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.

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THE CONTRIBUTION OF INTEGRATED REPORTING IN DETERMINING THE PERFORMANCE AND VALUE OF A SUSTAINABLE ORGANIZATION

Journal of Social Sciences ◽

10.52326/jss.utm.2021.4(1).04 ◽

2021 ◽

Vol IV(1) ◽

Author(s):

Camelia Mihalciuc ◽

Keyword(s):

Business Model ◽

Financial Reporting ◽

Information Needs ◽

Business Environment ◽

Essential Elements ◽

Integrated Reporting ◽

Nonfinancial Information ◽

Real Performance ◽

International Integrated Reporting Council

In the current business environment, financial reporting has become insufficient in terms of information, which is caused by the increasing information needs of stakeholders. In this context, an integrated reporting modality has emerged thanks to the International Integrated Reporting Council (IIRC), where the information presented is both financial and nonfinancial information, such reporting being called “Integrated Reporting”. Thus, starting from this consideration, the main objective of the paper aims at the main aspects that lead to the presentation of the benefits of implementing integrated reporting in organizations, through the ability to understand, in a more complete way, the "real" performance of a sustainable organization. The essential elements contained in an integrated reporting concern the capital, the business model and the process of creating and maintaining value, this reporting must be integrated in the strategy and vision of the organization, allowing through the transparency of these integrated reports the observation of all aspects led to the results obtained by the organization, as well as providing information on the role of the organization in society and the context in which it operates, the image of the organization being complete. The purpose of this paper is to highlight the importance and role assigned to integrated reporting in measuring the performance of a sustainable organization, by making it easier to understand the cause and effect of the link between financial performance and sustainability by stakeholders.

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