Theories on Integrated Reporting

2017 ◽  
pp. 23-28
Keyword(s):  
Institutional Theory ◽  
Agency Theory ◽  
Financial Information ◽  
Legitimacy Theory ◽  
Integrated Reporting ◽  
Social Governance ◽  
Accounting Theory ◽  
Positive Accounting Theory

This chapter seeks to explain the main theories used for studying integrated reporting. Scholars and academics conducted research on non-financial information (investigating environmental/social/governance reports), and even on integrated reports (still few studies in this field) involving a set of theories: institutional and neo-institutional theory, legitimacy theory, positive accounting theory, agency theory, accounting constellation theory, etc.

The antecedents of corporate social and environmental responsibility discourse in Pakistan: Multiple theoretical perspectives

2019 ◽  
Author(s):  
Muhammad Farhan Basheer ◽  
Saqib Muneer ◽  
Muhammad Atif ◽  
Zubair Ahmad
Keyword(s):  
Institutional Theory ◽  
Least Squares ◽  
Agency Theory ◽  
Stakeholder Theory ◽  
Fixed Effects ◽  
Ordinary Least Squares ◽  
Environmental Responsibility ◽  
Legitimacy Theory ◽  
Discourse Practices ◽  
Corporate Social

The primary purpose of the study is to explore the antecedents of corporate social and environmental responsibilities discourse practices in Pakistan. The industry sensitivity, government shareholding, block holder ownership, print media coverage, environmental monitoring programs, and strategic posture are examined as antecedents of corporate social and environmental responsibility practices. A multidimensional theoretical perspective namely stakeholder theory (ST), institutional theory (IT), agency theory (PAT), and legitimacy theory (LT) is used to conceptualize the phenomena. All the four of perspective theories (positive accounting theory, legitimacy theory, stakeholder theory, and institutional theory) claim that there are ‘pressures’ that impact the organization. How much ‘pressures’ are recognized, managed or satisfied differs from one perspective of theory to the other. To estimate the data, this study uses three sets of panel data models, i.e., the pooled ordinary least squares model (POLS) or constant coefficients model, fixed effects (FEM or least squares dummy variable/LSDV model) and random-effects models. The final sample is comprising of 173 firms over eight years from 2011 to 2017. The firms listed in PSX are included in the sample. Overall the findings of the study have shown agreement with the proposed results. However, the study has provided more support to the institutional theory and stakeholder theory. Keywords: Corporate Social Responsibility, Stakeholders Theory, Agency Theory, Pakistan

Literature Review

2017 ◽  
pp. 1-4
Keyword(s):  
Corporate Social Responsibility ◽  
Literature Review ◽  
Social Responsibility ◽  
Institutional Theory ◽  
Corporate Disclosure ◽  
Legitimacy Theory ◽  
Integration Process ◽  
Integrated Reporting ◽  
Corporate Reporting ◽  
Corporate Social

Within the current chapter, we present the most relevant (and recent) literature review in the fields of integrated reporting, corporate disclosure, accounting theories, etc. This section incorporates previous studies on our topic. We explain the integrated reporting (IR) origins from corporate social responsibility (CSR) and sustainability perspectives. In addition, we set the coordinates for the ‘integration' process as new disclosure mechanism of corporate reports, in the form of economic, social, and financial mix integration. Finally, the chapter deepens the understanding upon corporate reporting theories that can explain the integrated reporting trend: institutional theory, legitimacy theory and positive accounting theory.

Adoption of integrated reporting in Sri Lanka: coverage and trend

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Thilini Cooray ◽  
Samanthi Senaratne ◽  
Nuwan Gunarathne ◽  
Roshan Herath ◽  
Dileepa Neelangi Samudrage
Keyword(s):  
Sri Lanka ◽  
Design Methodology ◽  
The Other ◽  
Sri Lankan ◽  
Legitimacy Theory ◽  
Integrated Reporting ◽  
Content Type ◽  
Disclosure Requirements ◽  
Comprehensive Index ◽  
Reporting Framework

Purpose This paper aims to examine the coverage of and trends in reporting content elements in the integrated reports of the Sri Lankan companies following the International Integrated Reporting Framework (IIRF). Design/methodology/approach Based on a comprehensive checklist developed on the content elements of the IIRF, 171 corporate integrated reports were content-analyzed over a period of three years. The results were theorized subsequently using the legitimacy theory. Findings The study identifies that the extent of and trend in the coverage of content elements of the IIRF have increased during the period under consideration despite some under-addressed areas. It indicates that Sri Lankan companies are making progress in the preparation of integrated reports in line with the IIRF, which provides evidence in support of both strategic and institutional perspectives of the legitimacy theory because of the proactive actions taken by managers to acquire legitimacy along with the other normative and mimetic pressures available in the IR landscape. Originality/value This is one of the first studies that evaluate the compliance of IR adopters with the IIRF overtime in the entirety of a single country. It also develops a comprehensive index to capture the disclosure requirements of IR and extends the analysis to a voluntary context using both strategic and institutional perspectives of the legitimacy theory.

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.

Developing trust through stewardship

2019 ◽  
Vol 20 (1) ◽  
pp. 11-39 ◽  
Author(s):  
John Dumay ◽  
Matteo La Torre ◽  
Federica Farneti
Keyword(s):  
Agency Theory ◽  
Positive Impact ◽  
Stewardship Theory ◽  
Extended Model ◽  
Corporate Disclosure ◽  
Integrated Reporting ◽  
Content Type ◽  
Eu Directive ◽  
Management Behaviour ◽  
Corporate Disclosures

Purpose This paper examines the gap between reporting and managers’ behaviour to challenge the current theoretical underpinnings of intellectual capital (IC) disclosure practice and research. The authors explore how the key features from IC and integrated reporting can be combined to develop an extended model for companies to comply with EU Directive 2014/95/EU and increase trust in corporate disclosures and reports. Design/methodology/approach This essay relies on academic literature and examples from practice to critique the theories that explain corporate disclosure and reporting but do not change management behaviour. Based on this critique, the authors argue for a change in the fundamental theories of stewardship to frame a new concept for corporate disclosure incorporating using a multi-capitals framework. Findings We argue that, while the inconsistency between organisations’ reporting and behaviour persists, increasing, renewing or extending the information disclosed is not enough to instil trust in corporations. Stewardship over a company’s resources is necessary for increasing trust. The unanticipated consequences of dishonest behaviour by managers and shareholders compels a new application of stewardship theory that works as an overarching guide for managerial behaviour and disclosure. Emanating from this new model is a realisation that managers must abandon agency theory in practice, and specifically the bonus contract. Research limitations/implications We call for future empirical research to explore the role of stewardship theory within the dynamics of corporate disclosure using the approach. The research implications of those studies should incorporate the potential impacts on management behaviours within a stewardship framework and how those actions, and their outcomes, are disclosed for rebuilding public trust in business. Practical implications The implications for integrated reporting and reports complying with the new EU Directive are profound. Both instruments rely on agency theory to coax managers into reducing information asymmetry by disclosing more. However, agency theory only re-affirms the power managers have over corporate information. It does not change their behaviour, nor to act in the interest of all stakeholders as the stewards of an organisation’s resources. Social implications We advocate that, in business education, greater emphasis is needed on how stewardship has a more positive impact on management behaviour than agency, legitimacy and stakeholder theories. Originality/value We reflect on the current and compelling issues permeating the international landscape of corporate reporting and disclosure and explain why current theories which explain corporate disclosures do not change behaviour or engender trust in business and offer an alternative disclosure model based on stewardship theory.

scholarly journals Development of Integrated Reporting in Poland

2021 ◽  
Vol 1 (2) ◽  
Author(s):  
Bartosz Rymkiewicz
Keyword(s):  
Negative Impact ◽  
Rapid Development ◽  
Point Of View ◽  
Financial Information ◽  
Integrated Reporting ◽  
Public Companies ◽  
Wide Range ◽  
Quality Of Reports ◽  
Financial Disclosures ◽  
Social Environmental

Organizational reporting is the most important tool of communication between an enterpriseand its stakeholders. However, it is not a static tool but continues to develop and adapt to ongoingeconomic and social changes. Formerly covering only financial information; currently, it is supplementedby a wide range of non-financial information relating to all aspects of the business. The evolution ofreporting is particularly fostered by the rapid development of the concepts of corporate socialresponsibility and sustainable development, as well as the progressing changes in the information needsof stakeholders. Enterprises are increasingly publishing voluntary reports concerning the social,environmental, and employment aspects of their business in addition to reports required by law. Thisresults in the multiplication of reports and duplication of content, which has a negative impact on thereports' usefulness. The solution to this problem may be integrated reporting, which integrates andinterconnects financial and non-financial disclosures. A milestone for the development of integratedreporting was the elaboration of integrated reporting guidelines by the International Integrated ReportingCouncil (IIRC) in December 2013. The aim of the paper is to present the development of integratedreporting in Poland in 2014-2020 on the example of public companies listed on the Warsaw StockExchange. The quality of reports was assessed from the point of view of compliance with IIRC guidelines,as well as their usefulness for stakeholders. Content analysis of corporate publications and comparativeanalysis was used for this purpose.

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