Materiality judgments in an integrated reporting setting: The effect of strategic relevance and strategy map

Green, Wendy J.; Cheng, Mandy M.

doi:10.1016/j.aos.2018.07.001

Cited by 47 publications

(34 citation statements)

References 46 publications

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“…There is a great subjectivity in defining materiality for financial and nonfinancial information (Fasan & Mio, 2017), and this led complexities in assurance of the latter (Green & Cheng, 2019;Reimsbach, Rüdiger, & Gürtürk, 2018).…”

Section: Applying Inclusion/exclusion Criteriamentioning

confidence: 99%

The value relevance of corporate financial and nonfinancial information provided by the integrated report: A systematic review

Veltri

Silvestri

2020

Bus Strat Env

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The integrated report (IR) is a new reporting tool connecting financial and nonfinancial information, in one report. The aim of IR is to present the firm's value creation over time. In recent years, IR has received both increasing academic and professional interest. Recent researches have focused on the potentialities (and criticalities) of IR and on its determinants, while there is a dearth of studies examining the value relevance of the information disclosed through IR for investors. Furthermore, in the literature, there are two competing views on IR usefulness for investors, one positing IR as beneficial, the other, detrimental to investors. Our study intends to contribute to the existing literature by systematically reviewing the empirical studies conducted until now in a thorough and unbiased manner, allowing more general conclusions to be drawn about the phenomenon than is possible from individual studies and to give some insights for further research activities.

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Section: Applying Inclusion/exclusion Criteriamentioning

confidence: 99%

The value relevance of corporate financial and nonfinancial information provided by the integrated report: A systematic review

Veltri

Silvestri

2020

Bus Strat Env

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“…However, experimental studies highlight potential costs of integrated reporting on managers' operational decisions (Esch et al, 2019;Johnson, 2019), auditors' materiality assessments (Green and Cheng, 2019) and investors' investment judgements (Reimsbach et al, 2018;Bucaro et al, 2020). For example, Johnson (2019) conducted an experiment with managers 4 However, it is important to note that other studies find that CSR information is not informative to capital markets, and has no impact on firm value (e.g., Cho et al 2015).…”

Section: Related Literaturementioning

confidence: 99%

Effects of integrating CSR information in financial reports on investors’ firm value estimates

Haji¹,

Coram

Troshani

2020

Accounting & Finance

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Using an experiment, we find that corporate social responsibility (CSR) performance measures have a greater impact on investors' firm value estimates when reported in a separate report than when integrated into a financial report. We also find that more investors misclassified CSR information as assured when integrated into financial reports than when reported in separate reports. Investors who misclassified CSR information rated its credibility higher and derived higher firm value estimates compared to investors who correctly classified this information as non-assured. Overall, our results identify potential costs of integrating CSR measures in financial reports, and inform global regulators considering alternative CSR reporting frameworks.

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“…Its relationship to strategy, risks and opportunities, operations, and financial performance is often unclear (IFAC 2012). In addition, the content of current sustainability reports often lacks materiality 3 and can be incomplete and selective (Van Wensen et al 2011;Green and Cheng 2019). A focus on materiality implies limiting the information presented and reducing the number of metrics common across all organizations leading to less comparability of the reports.…”

Section: Comparabilitymentioning

confidence: 99%

The expected impacts of regulating non-financial reporting

Maas¹,

Sampers²

2020

MAB

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Traditional financial reporting is not sufficient anymore for the renewed need for information of stakeholders. In result, governments have created different policies to stimulate or to have seen a strong rise in this kind of reporting during the last decades. Stakeholders, including governments, have high expectations about the potential of the reporting process to lead to improved transparency and accountability as well as to internal change and performance improvement. In this article we have developed a theory of change, describing the logic of the path from reporting to performance improvement. Based on a literature study we have collected data that support or argue against this logic line. We conclude that there is limited evidence that we can expect that reporting automatically leads to improved performance. There is a clear need for more research into the impact of non-financial reporting on performance.

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Materiality judgments in an integrated reporting setting: The effect of strategic relevance and strategy map

Cited by 47 publications

References 46 publications

The value relevance of corporate financial and nonfinancial information provided by the integrated report: A systematic review

The value relevance of corporate financial and nonfinancial information provided by the integrated report: A systematic review

Effects of integrating CSR information in financial reports on investors’ firm value estimates

The expected impacts of regulating non-financial reporting

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