scholarly journals MODELING THE RELATIONSHIP BETWEEN INTEGRATED REPORTING QUALITY AND SUSTAINABLE BUSINESS DEVELOPMENT

2021 ◽  
Vol 22 (6) ◽  
pp. 1476-1491
Author(s):  
Marius-Sorin Ciubotariu ◽  
Marian Socoliuc ◽  
Veronica Grosu ◽  
Svetlana Mihaila ◽  
Cristina Gabriela Cosmulese Cosmulese
Keyword(s):  
Intellectual Capital ◽  
Reporting Quality ◽  
Positive Trend ◽  
Key Factors ◽  
Integrated Reporting ◽  
Sustainable Business ◽  
The Social ◽  
Infrastructure Services ◽  
The Relationship ◽  
Higher Sensitivity

The aim of the paper is to provide an overview of the sensitivity in terms of the preference for using the integrated reporting quality (IRQ) based on the reporting companies’ field of activity. The study focusses on designing a sensitivity analysis relying on the most relevant financial and nonfinancial indicators as required by the stakeholders. They were adjusted by the key factors for the IRQ such as the social, natural, human and intellectual capital. The study has been designed based on the upgrade and in compliance with the connectivity principle as required by the IIRC. The data was collected from the IR examples Database between 2015–2017. The results suggest that based on sensitivity function value, those sectors of activity such as transportation and infrastructure, services and trade have a higher sensitivity preference for the IR due to the quantification of the stakeholders’ interest in terms of performance positive trend indexes. Making use of regressive techniques, the authors undertook an econometrical model for the evaluation of the IRQ that may become very useful for those companies that intend to set in place a sustainable business as it provides them the opportunity of measuring the IRQ.

Drivers for voluntary intellectual capital reporting based on agency theory

2019 ◽  
Vol 20 (2) ◽  
pp. 264-281 ◽  
Author(s):  
Viktoria Goebel
Keyword(s):  
Propensity Score ◽  
Agency Theory ◽  
Propensity Score Matching ◽  
Intellectual Capital ◽  
Integrated Reporting ◽  
Content Type ◽  
The Relationship ◽  
Practical Implications ◽  
Management Report

PurposeThe purpose of this paper is to investigate the drivers for voluntary intellectual capital (IC) reporting based on agency theory. This study responds to calls for critical investigations of IC reporting utilising Goebel’s (2015a) IC measuring approach to investigate the role of IC value and mispricing for IC reporting.Design/methodology/approachA mandatory management report offers a unique research setting in Germany. The content analysis results of 428 German management reports are used in a regression analysis with leverage, ownership diffusion, IC value and mispricing. Additionally, a propensity score matching approach examines the relationship between IC reporting and IC value.FindingsThe regression results show that companies use voluntary IC reporting to encounter mispricing. IC reporting is negatively associated with leverage, whereas ownership diffusion and IC value show no significant results. The propensity score matching approach is also not significant.Research limitations/implicationsThis study contributes to strengthening and testing agency theory for IC reporting. As mispricing is identified to play an important role for IC reporting, IC research should account for mispricing.Practical implicationsThe findings suggest to reopen a discussion on the declared aims of the German management report and the international integrated reporting model to provide information on value creation, as IC value shows no link to IC reporting.Originality/valueThis study innovatively links IC reporting to IC value and mispricing to investigate drivers for voluntary IC reporting.

Intellectual capital disclosure in integrated reporting: an impression management analysis

2015 ◽  
Vol 16 (3) ◽  
pp. 661-680 ◽  
Author(s):  
Gaia Melloni
Keyword(s):  
Content Analysis ◽  
Impression Management ◽  
Intellectual Capital ◽  
Design Methodology ◽  
Public Perceptions ◽  
Integrated Reporting ◽  
Content Type ◽  
International Integrated Reporting Council ◽  
The Relationship

Purpose – Intellectual capital (IC) is fundamental to understanding how firms create value; however, current IC disclosure (ICD) has been described as inadequate due to the lack of an established IC framework and companies’ actual commitment to report IC information. The International Integrated Reporting Council aims to foster ICD by means of integrated reporting (IR); such a report should display how IC and other forms of capital (e.g. financial) contribute to value creation over time. Drawing on impression management (IM) studies, the purpose of this paper is to assess the quality of ICD offered in IR. Design/methodology/approach – A manual content analysis of all the reports available in the International Integrated Reporting Council web site is run considering both the content of ICD and specific linguistic attributes (evidence, time orientation and tone). In addition, the study tests the relationship between the positive ICD tone and specific characteristics that may incentive managers to manipulate their disclosure to determine whether firms use ICD to manage public perceptions of corporate behaviour. Findings – The results of the content analysis show that majority of ICD is focused on relational capital, with limited quantitative and forward-looking information. Additionally, compared to non-ICD, ICD is significantly more optimistic. Furthermore, the positive tone of ICD is significantly associated with declining performance, bigger size and higher level of intangibles supporting the use of ICD as an IM strategy. Originality/value – The research contributes to the literature offering evidence of the quality of the ICD offered in the IR and demonstrating that ICD offered in the IR is used by managers opportunistically to advance their image.

scholarly journals Social entrepreneurship innovation: A study from Mexico

2020 ◽  
Author(s):  
AISDL
Keyword(s):  
Social Entrepreneurship ◽  
Value Added ◽  
Organizational Factors ◽  
Structural Equations ◽  
Social Entrepreneur ◽  
Social Entrepreneurs ◽  
Sustainable Business ◽  
Global Pandemic ◽  
The Social ◽  
The Relationship

Objective: The objective of this research project is to explore the personal and organizational factors that lead to innovation in social entrepreneurs. The study improves the understanding of this type of entrepreneurs in Mexico.Research Design & Methods: The study includes 81 social entrepreneurs from different regions of Mexico. A questionnaire was carried out taking into account five factors: creativity, autonomy, tasks and roles of the entrepreneur and innovation of the process and the product or service. The approach used was quantitative through structural equations to establish a relationship between the variables. The method used was through partial least squares.Findings: Through the structural equations, the relationship between the variables studied is shown. The relationship between the personal and organizational variables of the social entrepreneur on product or service innovation is verified. The social entrepreneur innovates to reach the goals that are proposed.Implications & Recommendations: It is necessary to sensitize the different governmental and non-governmental sectors that promote social entrepreneurship in Mexico. Entrepreneur training strategies can help them achieve a sustainable business and, in this way, contribute to promoting social justice.Contribution & Value Added: This work highlights the personal and organizational factors of the social entrepreneur in Mexico that had not been previously studied. These days, due to a severe crisis caused by the global pandemic, it will take a greater number of social entrepreneurs to be able to overcome social lags.

scholarly journals The Desirability of a Future Integrated Reporting in the Study of Social and Innovative Practices

2021 ◽  
Author(s):  
María-Victoria López-Pérez ◽  
Lourdes Arco-Castro ◽  
Jesús-Mauricio Flórez-Parra ◽  
Sara Rodríguez-Gómez
Keyword(s):  
Corporate Social Responsibility ◽  
Intellectual Capital ◽  
Financial Resources ◽  
Business Activity ◽  
Integrated Reporting ◽  
Environmental Commitment ◽  
Global View ◽  
Corporate Social ◽  
The Relationship ◽  
Financial Issues

Corporate social responsibility (CSR) has been considered the materialisation of ethics in organisations. CSR practices reflect companies’ non-financial aspects, such as social and environmental issues. The proposal of an integrated report that jointly presents financial and non-financial issues would provide a global view of business activity, which will allow for analysis of the relationships and interactions among financial and non-financial resources involved in value creation, including human, social and relational, natural, and intellectual capital. If these resources are related, a report that integrates all of them would facilitate analysis. In this research, the relationship between innovation and CSR is studied. Environmental commitment may be a source of innovation (in the process of production and types of products) and involves social, relational, and intellectual capital changes. Innovation has previously been analysed from a perspective of competitiveness, necessitating a change of approach towards stakeholders that could allow us to reach a conceptual understanding of these relations. The research is empirically verified by studying a sample of 590 firm-years across 118 European companies that are leaders in sustainability, in the five-year period of 2011–2015. The results obtained show that CSR is a benchmark for addressing innovation and justifies the interest in an integrated reporting model that provides a global view of business.

scholarly journals Coworking and Sustainable Business Model Innovation in Young Firms

2019 ◽  
Vol 11 (10) ◽  
pp. 2959 ◽  
Author(s):  
Sarah Cheah ◽  
Yuen-Ping Ho
Keyword(s):  
Business Model ◽  
Business Model Innovation ◽  
Social Climate ◽  
Sustainable Business ◽  
Policy Makers ◽  
Young Firms ◽  
Sustainable Performance ◽  
The Social ◽  
Coworking Spaces ◽  
The Relationship

In larger cities, we see a rising trend of more people working outside their traditional offices, and engaging in a practice called co-working by sharing office space. The public policy makers of innovation-driven economies, on the other hand, have been availing co-working spaces and related support to promote innovation and entrepreneurship. Despite the growing significance of this area, there has been limited research on the link between coworking and innovation among young firms. This research examines the relationship between coworking space and innovation, particularly business model innovation (BMI) for sustainable performance. Based on an empirical study of 258 young tenant firms operating in 13 coworking spaces in Singapore, we establish that the space creativity of coworking spaces is positively related to the BMI outcome of tenant firms. Tenant firms’ opportunity recognition and exploitation (ORE) process positively mediates the relationship between the space creativity of coworking spaces and the BMI outcome of tenant firms. While the social climate of the coworking space is found to have no direct effect on the BMI outcome of tenant firms, tenant firms’ ORE process positively mediates the relationship between the social climate of coworking spaces and the sustainable BMI outcome of tenant firms.

Is integrated reporting associated with corporate financing decisions? Some empirical evidence

2019 ◽  
Vol 27 (3) ◽  
pp. 425-443 ◽  
Author(s):  
Tesfaye T. Lemma ◽  
Arifur Khan ◽  
Mohammad Badrul Muttakin ◽  
Dessalegn Getie Mihret
Keyword(s):  
Financial Reporting ◽  
Reporting Quality ◽  
Financial Reporting Quality ◽  
Integrated Reporting ◽  
Equity Financing ◽  
Corporate Financing ◽  
Content Type ◽  
Financing Decisions ◽  
Financing Strategy ◽  
The Relationship

Purpose The emerging practice of integrated reporting (IR) has raised curiosity regarding how it impacts on firms and their stakeholders. The purpose of this paper is to examine whether a firm’s decision to provide integrated reports is associated with its financing decisions and whether financial reporting quality mediates the relationship. Design/methodology/approach A usable sample of 832 firm-year observations was employed based on a dataset drawn from companies listed on the Johannesburg Securities Exchange (JSE) for the period between 2009 and 2015. Findings The findings show that firms that provide integrated reports tend to have lower levels of leverage, and this effect is partially mediated through financial reporting quality. We further document that the partial effect of financial reporting quality on leverage is stronger for firms that provide integrated reports than is the case for other firms. The findings suggest that IR enables firms to employ equity financing, which is a more informationally-sensitive source of capital than debt financing. Originality/value This study is the first to document evidence suggesting that management can draw on IR in devising optimal financing strategy.

Practitioners’ views on intellectual capital and sustainability

2018 ◽  
Vol 19 (2) ◽  
pp. 367-386 ◽  
Author(s):  
Maurizio Massaro ◽  
John Dumay ◽  
Andrea Garlatti ◽  
Francesca Dal Mas
Keyword(s):  
Intellectual Capital ◽  
Design Methodology ◽  
Integrated Reporting ◽  
Content Type ◽  
Managerial Practices ◽  
Sustainability Research ◽  
Research Questions ◽  
The Impact ◽  
The Relationship

Purpose The purpose of this paper is to investigate the relationship between intellectual capital (IC) and sustainability using practitioners’ perspectives and by developing an analysis of comments and practices published in 1,651 blog posts in one of the leading sources of sustainability research: CSRwire.com. Design/methodology/approach A total of 1,651 posts, containing more than 1.5 million words, published by experts in the field of sustainability are analysed using Leximancer and content analysis. Findings The results reveal IC and sustainability to be complex topics under active discussion by practitioners, and several links to the IC literature are identified and compared. The findings focus on the managerial practices applied by leading companies, as discussed by practitioners, that show IC and sustainability influence each other in answering a plurality of demands or logics. Research limitations/implications First, the authors identify the need to study the managerial practices proposed by practitioners, rather than their company reports. Second, the authors propose developing a trading zone for IC researchers and practitioners. Third, the authors reflect on the role of new communication tools, such as integrated reporting, to connect IC and sustainability. Finally, the authors conclude that the relationship between IC and sustainability could benefit from a fifth stage of IC research that considers justifications of the worth of IC and sustainability practices. Originality/value The paper is novel because it addresses concerns about the relationship between IC and sustainability by examining messages posted by practitioners, rather than examining company disclosures. This leads to an understanding of the impact of practices rather than the desires motivating practice. The results support the view that it is time to remove the boundaries of IC research and work towards reconciling the worth of IC to different people in different contexts. The authors argue that practitioners require scholars to reduce the ambiguity between IC and its expected results. This would open the door to a potentially productive way of understanding IC and the complexity of economic, social, and environmental value. In short, researchers should change their research questions from, “What is IC worth to investors, customers, society, and the environment?” to “Is managing IC a worthwhile endeavour?”

scholarly journals The significance of intellectual capital in strategies of transnational corporations

2020 ◽  
Vol 56 (4) ◽  
pp. 291-306
Author(s):  
Magdalena Rosińska-Bukowska
Keyword(s):  
Intellectual Capital ◽  
Practical Implication ◽  
Transnational Corporations ◽  
Original Proposal ◽  
Grounded Theory Method ◽  
Proposed Model ◽  
The Social ◽  
Study Results ◽  
Capital Efficiency ◽  
The Relationship

AbstractObjectiveThis study is an attempt to identify crucial assets of intellectual capital (IC) of transnational corporations (TNCs). The author identifies key assets each of the IC layers: organizational, innovative, and institutional. Examining these complex constructions of IC and its comprehensive influence on achieving competitive advantage is justified as the topic has been investigated rarely till now.MethodsThe paper presents literature review and the results of an authorial survey (252 corporations). The author used the following methodology concepts: the Grounded Theory Method, the Social Network Analysis, and the Multidimensional Statistical Analysis.FindingsThe results of the conducted analysis do sustain the postulated hypothesis that the main pillars constituting the intellectual capital of the most powerful transnational corporations (leaders) are the same in terms of the core irrespective of the type of industry. Based on the conducted research, the author points to the three key requirements for each of three IC layers (organizational, innovative, and institutional).Practical implicationThe proposed model of layers of intellectual capital may be used to identify the relationship in question, or its lack of relationship, in other types of international business. Furthermore, the study results provide guidelines for executives of corporations with respect to intellectual capital management.Originality/valueIt is a new, original proposal for measurement and presentation of the relationship between international competitiveness of transnational corporations and their intellectual capital efficiency (pillars of IC-layers).

scholarly journals Investigating the Relationship between the Social and Economic-financial Performance

2017 ◽  
Vol 3 (1) ◽  
pp. 55
Author(s):  
Giovanni Vaia ◽  
Marco Bisogno ◽  
Aurelio Tommasetti
Keyword(s):  
Economic Performance ◽  
Corporate Social Performance ◽  
Financial Analysis ◽  
Social Performance ◽  
Financial Economic ◽  
Ratio Analysis ◽  
Key Factors ◽  
The Social ◽  
Corporate Social ◽  
The Relationship

Hundreds of studies have explored and measured financial returns related to social performance (Margolis and Walsh, 2003), with controversial results. In addition to these studies’ outcomes, we found, in this body of literature, a lot of innovation in the integration and adaptation of financial analysis tools and models to the study of statistical relationships.In this paper, we investigate the relationship between corporate social performance and corporate financial (and economic) performance, using multiple measures of financial and social performance and by looking statistically at the movement of actual financial and social performance over time. We emphasize the worth of statistical analysis in traditional financial representations.Our findings show how ratio analysis and statistical cause-and-effect validation are not alternatives for developing the financial analysis of sustainability and reporting. We show, through constant testing and a double learning process, the critical relationship between the key factors of financial, economic and social performance.

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