Abstract:The objectives of this paper are twofold: the first objective is to critically analyze the literature of integrated reporting in clarifying the role and form of integrated reporting; and the second objective is to survey on the awareness of Malaysian accountants about integrated reporting. with the sustainability process (Brown, de Jong, & Levy, 2009; Buhr, Gray, & Milne, 2014). However, recent development shows that readers are overloaded with the increased complexity and lengthy information, thereby
“…The International Integrated Reporting Framework has been attempting to unify integrated reporting policy across national boundaries through IIRC efforts, thus ensuring comparability and consistency in reporting business activities within and across countries. Integrated reporting enables businesses to keep up with international developments by focusing on true value drivers (Mohammed et al , 2020), facilitating access to international markets. However, the increasingly sophisticated nature of business transactions can be difficult to understand, particularly with respect to the growing number of business organizations that cross international boundaries (Eccles and Krzus, 2010).…”
Section: Discussionmentioning
confidence: 99%
“…The accounting literature offers differing views of integrated reporting schemes that have been separately used when interpreting corporate reporting phenomena (see e.g. Humphrey et al , 2017; Jensen and Berg, 2012; Idowu et al , 2016; Mohammed et al , 2020). However, the literature largely appreciates the use of a multidimensional theoretical perspective to interpret complex multifaceted phenomena such as integrated reporting (Cormier et al , 2005; Dragomir and Dumitru, 2023; Herold et al , 2019; Jayasiri et al , 2023).…”
Section: Institutional and Stakeholder Interaction In The Context Of ...mentioning
confidence: 99%
“…Integrated reporting has been normatively linked to improved firm valuation and better economic consequences (Velte, 2022). It enables businesses to keep up with international developments by focusing on true value drivers comprising strategic factors beyond just the financials (Mohammed et al , 2020). This is especially important for business organizations that cross international boundaries.…”
Purpose
This study aims to investigate the role of institutional and stakeholder interaction in the development of integrated reporting policy by the International Integrated Reporting Council (IIRC). It helps advance the theory of integrated reporting and offers insights into its fundamental concepts and relevant issues.
Design/methodology/approach
A flexible pattern-matching qualitative research approach is used and an analytical framework of integrated reporting historical foundations and conceptual background is developed. An IIRC case analysis is conducted by using a chronological content analysis of the International Integrated Reporting Framework and related initiatives and publications for integrated reporting policy pronouncements.
Findings
Institutional and stakeholder pressures within both the organization’s macro and micro contexts have played an effective role in transforming corporate reporting practices. In an integrated reporting context, institutional forces of normative and mimetic isomorphism seem to have more influence on organizations than coercive pressures, where stakeholder pressures with limited official power derive influence from their legitimacy while urgency is evidently implied. Findings indicate that integrated reporting policy has emerged analogously with the institutional environment and stakeholders’ expectations. The distinct nature of integrated reporting has caused a paradigm shift from silo thinking of wealth creation to integrated thinking of value creation.
Research limitations/implications
This is an exploratory study that does not consider different prominent integrated reporting models. It has important implications for policymakers in articulating the integration of financial and nonfinancial metrics for reporting overall corporate performance. It can help academics build on integrated reporting foundations for conducting future research and assist practitioners in operationalizing integrated reporting policy into practice. Moreover, it has potential prospects for international business in developing integrated reporting policies and strategies aimed at creating mutual value in specific international contexts.
Originality/value
Integrated reporting represents a new internationally developing reporting trend with distinct reporting features and foundations for value creation. The study provides considerable addition to emerging research into the growing awareness of integrated reporting policy, develops a conceptual model of institutional and stakeholder interaction and theorizes on such interplay, identifies the potential influences under which integrated reporting is likely to occur and offers key insights into integrated reporting policy. Hence, it contributes to the ongoing global challenge of promoting the reporting transition to integrated reporting and its perceived future endorsement.
“…The International Integrated Reporting Framework has been attempting to unify integrated reporting policy across national boundaries through IIRC efforts, thus ensuring comparability and consistency in reporting business activities within and across countries. Integrated reporting enables businesses to keep up with international developments by focusing on true value drivers (Mohammed et al , 2020), facilitating access to international markets. However, the increasingly sophisticated nature of business transactions can be difficult to understand, particularly with respect to the growing number of business organizations that cross international boundaries (Eccles and Krzus, 2010).…”
Section: Discussionmentioning
confidence: 99%
“…The accounting literature offers differing views of integrated reporting schemes that have been separately used when interpreting corporate reporting phenomena (see e.g. Humphrey et al , 2017; Jensen and Berg, 2012; Idowu et al , 2016; Mohammed et al , 2020). However, the literature largely appreciates the use of a multidimensional theoretical perspective to interpret complex multifaceted phenomena such as integrated reporting (Cormier et al , 2005; Dragomir and Dumitru, 2023; Herold et al , 2019; Jayasiri et al , 2023).…”
Section: Institutional and Stakeholder Interaction In The Context Of ...mentioning
confidence: 99%
“…Integrated reporting has been normatively linked to improved firm valuation and better economic consequences (Velte, 2022). It enables businesses to keep up with international developments by focusing on true value drivers comprising strategic factors beyond just the financials (Mohammed et al , 2020). This is especially important for business organizations that cross international boundaries.…”
Purpose
This study aims to investigate the role of institutional and stakeholder interaction in the development of integrated reporting policy by the International Integrated Reporting Council (IIRC). It helps advance the theory of integrated reporting and offers insights into its fundamental concepts and relevant issues.
Design/methodology/approach
A flexible pattern-matching qualitative research approach is used and an analytical framework of integrated reporting historical foundations and conceptual background is developed. An IIRC case analysis is conducted by using a chronological content analysis of the International Integrated Reporting Framework and related initiatives and publications for integrated reporting policy pronouncements.
Findings
Institutional and stakeholder pressures within both the organization’s macro and micro contexts have played an effective role in transforming corporate reporting practices. In an integrated reporting context, institutional forces of normative and mimetic isomorphism seem to have more influence on organizations than coercive pressures, where stakeholder pressures with limited official power derive influence from their legitimacy while urgency is evidently implied. Findings indicate that integrated reporting policy has emerged analogously with the institutional environment and stakeholders’ expectations. The distinct nature of integrated reporting has caused a paradigm shift from silo thinking of wealth creation to integrated thinking of value creation.
Research limitations/implications
This is an exploratory study that does not consider different prominent integrated reporting models. It has important implications for policymakers in articulating the integration of financial and nonfinancial metrics for reporting overall corporate performance. It can help academics build on integrated reporting foundations for conducting future research and assist practitioners in operationalizing integrated reporting policy into practice. Moreover, it has potential prospects for international business in developing integrated reporting policies and strategies aimed at creating mutual value in specific international contexts.
Originality/value
Integrated reporting represents a new internationally developing reporting trend with distinct reporting features and foundations for value creation. The study provides considerable addition to emerging research into the growing awareness of integrated reporting policy, develops a conceptual model of institutional and stakeholder interaction and theorizes on such interplay, identifies the potential influences under which integrated reporting is likely to occur and offers key insights into integrated reporting policy. Hence, it contributes to the ongoing global challenge of promoting the reporting transition to integrated reporting and its perceived future endorsement.
“…IR has received acceptance in Malaysia through the involvement of key stakeholders in corporate reporting in the country. Organisations that have demonstrated keen enthusiasm for IR include the Malaysian Institute of Accountants (MIA), Securities Commission Malaysia (SCM), and the Malaysia Association of Certified Public Accountants (MACPA) (Mohammed et al, 2020). The MIA, one year after the IIRC released the first IR framework in 2013, formed the Integrated Reporting Steering Committee (IRSC) to actively promote the roll-out of IR in Malaysia.…”
Integrated reporting has evolved over time, being a coagulation of various corporate reporting regimes that have been integrated to form a single concise report. Different jurisdictions have accepted integrated reporting, albeit to varying degrees of implementation. In South Africa, integrated reporting is mandatory for companies listed on the Johannesburg Stock Exchange. In other jurisdictions, integrated reporting is voluntary. This article traces the historical development of corporate reporting culminating in integrated reporting. The progress of implementation in different countries and regions is reviewed, showing challenges and recommendations to improve the implementation statuses. Objectives: The main objective of this study was to give a historical perspective on the development of integrated reporting over the years and in different jurisdictions, examining challenges of integrated reporting implementation and suggestions for improvement are offered. Methods: The study used a literature review approach to gather the history of corporate reporting and integrated reporting implementation progress Results: Integrated reporting is still a developing corporate reporting phenomenon that is at various stages of implementation in various jurisdictions across the world.
Conclusions:The study shows that actions are required to bring the implementation of integrated reporting to similar levels for countries that have accepted it.
“…Adhariani and de Villiers's (2018) findings on perceived advantages were consistent with the MIA-ACCA (2016) survey on Malaysia, which showed that the benefits of IR included fostering integrated thinking, enhancing communication with external stakeholders, and enhancing transparency and governance. Hence, better decision making by focusing on the actual value drivers of business (Mohammed et al, 2020).…”
Section: Benefits Of Integrated Reportingmentioning
Purpose: The purpose of the study is to examine the potential of Integrated Reporting (IR) adoption by a city council through the identification of its enablers and challenges. Design/Methodology/Approach: The study utilised a qualitative interpretative case study of a city council that has the potential to pioneer IR adoption among local authorities. Data collection involved in-depth interviews as well as document analysis. Findings: Findings from this study indicates that IR, which was originally seen as a private sector initiative, has relevance and application to public sector organisations. Challenges faced by the respondent to implement IR is the lack of knowledge on how to prepare the IR in tying together numerous aspects that can meet the requirement of information usefulness to stakeholders. The lack of benchmarking cases for reference and limited information on the cost involved in IR adoption are acknowledged as challenges Training, management support and innovative culture are considered IR enablers at City Council ONE. Research Limitation: This study is exploratory in nature as a single case study is used, and City Council ONE has not adopted IR. Practical Implication: Identifying challenges and enablers is important for city councils to assess their readiness prior to adopting IR. The findings could be used as input to the regulators and other public sector entities to facilitate the implementation of IR. Originality/Value: This study is part of a more extensive research on IR enablers and challenges for Local Authorities of Malaysia. Keywords: Integrated reporting, city council, enablers, challenges.
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