Does integrated reporting information influence internal decision making? An experimental study of investment behavior

Esch, Martin; Schnellbächer, Benedikt; Wald, Andreas

doi:10.1002/bse.2267

Cited by 74 publications

(87 citation statements)

References 70 publications

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“…Despite IR being a relatively new concept, several areas of this topic have already been explored (Vitolla, Raimo, & Rubino, ). Scholars focused mainly on the determinants (Frías‐Aceituno, Rodríguez‐Ariza, & Garcia‐Sánchez, ; García‐Sánchez, Rodríguez‐Ariza, & Frías‐Aceituno, ; Jensen & Berg, ) and the effects of IR (Barth, Cahan, Chen, & Venter, ; Cosma, Soana, & Venturelli, ; Esch, Schnellbächer, & Wald, ; Lee & Yeo, ; Martinez, ; Pavlopoulos, Magnis, & Iatridis, ; Vitolla & Raimo, ).…”

Section: Literature Reviewmentioning

confidence: 99%

How pressure from stakeholders affects integrated reporting quality

Vitolla

Raimo

Rubino

et al. 2019

Corp Soc Responsibility Env

150

148

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Integrated reporting (IR) is considered an innovative and effective reporting tool that includes financial and nonfinancial information. Recently, there has been a heightened emphasis on IR from both academic and professional viewpoints. However, despite the importance of stakeholders in the practice of IR, their impact on the report drafting process has not been analysed in any study. Therefore, this study aims to fill this gap by analysing the relationship between stakeholders' pressure and IR quality.On the basis of the stakeholder theory, this study uses a regression model to demonstrate how the IR quality is significantly and positively associated with the stakeholders' pressures. Specifically, results of this study indicate that pressures from customers, environmental protection organizations, employees, shareholders, and governments determine the IR quality. To the best of our knowledge, this is the first study that investigates stakeholders' pressure as a determinant of IR quality. KEYWORDS disclosure, IIRC, integrated reporting, stakeholder pressure, stakeholder theory | INTRODUCTIONAn increase in the relevance of nonfinancial disclosure, in general, and integrated reporting (IR), in particular, relates to two closely interlinked aspects: the marked criticality of stakeholder relationships in ensuring the medium-and long-term success of a company and the growing importance of voluntary disclosure models. Concerning the first aspect, the environment in which companies operate has been radically changed by several factors such as globalization, citizens' sensitivity to ecological issues, attention to human rights, financial scandals, and national and international regulation of social and environmental issues. These changes in the scenario in which companies operate have driven the need to think about new business models and to redefine processes, tools, and management models that will help companies to achieve not only financial goals but also social and environmental goals. The financial balance and the ability to obtain competitive advantages and to create value in the short, medium, and long terms are, consequently, closely connected with the quality of managing relationships with different stakeholders groups that bring the necessary skills and resources for conducting business activities. This context leads to the second aspect in which the analysis of nonfinancial disclosure becomes particularly relevant -the strategic criticality of voluntary disclosure. The management of communication activities has a significant impact on stakeholder relationships, and it is critical for the medium-and long-term success in terms of the extension of the company's stakeholders and their contributions. In relation to the two aspects outlined above, this study aims to analyse the impact of the stakeholders' pressure on IR quality. IR, developed by the International Integrated Reporting Council (IIRC), is a corporate reporting tool that resulted from the evolution of environmental, social, and sustainability reports. ...

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Section: Literature Reviewmentioning

confidence: 99%

How pressure from stakeholders affects integrated reporting quality

Vitolla

Raimo

Rubino

et al. 2019

Corp Soc Responsibility Env

150

148

View full text Add to dashboard Cite

show abstract

“…The growing importance of IR has led to greater attention from both academics (Velte & Stawinoga, 2017; Vitolla, Raimo, & De Nuccio, 2018) and practitioners (EY, 2014; International Federation of Accountants, 2016, 2017; KPMG, 2017). The most common topics addressed by researchers regarding IR are its effects (Esch, Schnellbächer, & Wald, 2019; García‐Sánchez & Noguera‐Gámez, 2017; Mervelskemper & Streit, 2017; Vitolla & Raimo, 2018) and determinants (Frias‐Aceituno, Rodriguez‐Ariza, & Garcia‐Sanchez, 2013a, 2013b, 2014; Jensen & Berg, 2012).…”

Section: Introductionmentioning

confidence: 99%

The role of ownership structure in integrated reporting policies

et al. 2020

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Integrated reporting (IR) is used to demonstrate a firm's capacity to create value in the short, medium, and long term. It can better represent existing relationships between the company and its stakeholders, with a particular focus on investors. Attention to IR has grown considerably in recent years. However, studies on the determinants of IR quality are still limited. This study aims to bridge this literature gap by being the first study to analyse the role of ownership structure in IR context. To this end, it uses agency theory and is based on a sample of 152 international companies that have adopted IR. The results indicate a positive effect of institutional ownership and a negative effect of ownership concentration, managerial ownership and state ownership on the quality of integrated reports. These results are also consistent with the level of alignment of integrated reports with the framework. To our knowledge, this is the first study that analyses the role of ownership structure in the IR policies.

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“…From an academic perspective, the focus on integrated reporting has grown significantly in recent years Vitolla et al, 2019c). Existing empirical contributions have mainly analysed the effects (Mervelskemper & Streit, 2017;Barth et al, 2017;Esch et al, 2019;Vitolla et al, 2020a) and the antecedents of integrated reporting (Jensen & Berg, 2012;Gerwanski et al, 2019;Frías-Aceituno et al, 2013a;2014;Vitolla et al, 2019d;2020b). These studies, however, focused exclusively on the adoption of this tool or on the quality of the information provided.…”

Section: Introductionmentioning

confidence: 99%

Corporate Governance Variables and Integrated Reporting

Marrone¹

2020

IJBM

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Integrated reporting (IR) represents the last frontier of corporate disclosure. Its purpose is to provide information on an organization's strategy and its business model, performance and governance, offering a clear overview of the organization's capacity to create value. From an academic point of view, the focus on integrated reporting has grown significantly in recent years. However, an aspect still little explored is represented by the level of compliance of the integrated reports with the IIRC requirements. Among the few studies on the issue of the level of alignment of integrated reports with the IIRC framework, only two focused on identifying the determinants. This work aims to bridge this gap through the analysis of the effect of three characteristics of the board (size, average age, gender diversity) and one of the CEO (duality) on the level of compliance of integrated reports with the IIRC framework. The results show a significant and positive effect of board size and board gender diversity on the level of alignment of integrated reports with the IIRC framework. They also show a significant and negative effect of the CEO duality and a not significant effect of the board average age.

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Does integrated reporting information influence internal decision making? An experimental study of investment behavior

Cited by 74 publications

References 70 publications

How pressure from stakeholders affects integrated reporting quality

How pressure from stakeholders affects integrated reporting quality

The role of ownership structure in integrated reporting policies

Corporate Governance Variables and Integrated Reporting

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