The impact of corporate governance on integrated reporting (IR) quality and sustainability performance: evidence from listed companies in South Africa

Appiagyei, Kwadjo; Djajadikerta, Hadrian Geri; Roni, Saiyidi Mat

doi:10.1108/medar-07-2020-0946

Cited by 11 publications

(26 citation statements)

References 103 publications

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“…Flower, 2015;Thomson, 2015). However, emerging empirical evidence suggests that there is value in IR in terms of promoting the sustainability behaviour of firms (see Appiagyei et al, 2022;Le Roux and Pretorius, 2019;Omran et al, 2021). These empirical findings affirm the assertions of the IIRC that IR promotes both financial and sustainability performance.…”

Section: Introductionmentioning

confidence: 57%

“…In relating IR to sustainability, prior research on the effect of IR on sustainability performance provides evidence of a positive association between IR and sustainability performance (see Appiagyei et al, 2022;Le Roux and Pretorius, 2019;Omran et al, 2021). Le Roux and Pretorius (2019) use a single case study of a JSE-listed firm to investigate the link between IR and sustainability embeddedness.…”

Section: Ir and Sustainability Performancementioning

confidence: 99%

“…Despite the emerging empirical support for the positive IR and sustainability performance relationship, Hsiao et al (2021) decry the significance of IR in promoting sustainability in an environment where the practice of IR is considered a mainstream reporting practice. We note that prior literature focuses on the nexus between IR and sustainability or environmental performance (see Appiagyei et al, 2022;Du Toit et al, 2017;Le Roux and Pretorius, 2019;Omran et al, 2021;Solomon and Maroun, 2012). Hence, while the IR and sustainability performance relationship is established in the literature, little is known about the factors that moderate this relationship.…”

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confidence: 99%

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Integrated reporting quality and sustainability performance: does firms' environmental sensitivity matter?

Appiagyei

Donkor²

2023

JAEE

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PurposeThis study examines the effect of the environmental sensitivity of firms on the relationship between integrated reporting (IR) quality and sustainability performance. Prior research works focus on the nexus between IR quality and sustainability performance with little attention to factors that moderate this relationship.Design/methodology/approachOrdinary least squares (OLS) and other robust estimations are employed to analyse the data of firms on the Johannesburg Stock Exchange (JSE).FindingsThis study finds a positive association between IR quality and sustainability performance. However, the strength of this relationship is found to be weaker among environmentally sensitive firms, thereby raising concerns that such firms may be reporting less sustainability information with the mandatory implementation of IR on the JSE.Practical implicationsThe findings highlight the need for regulatory bodies to consider additional sustainability disclosure requirements for firms in environmentally sensitive industries.Social implicationsThe findings should make regulatory bodies aware of the possible actions of environmentally sensitive firms in relation to sustainability information within a mandatory setting of IR.Originality/valueThe study extends the existing literature on IR and sustainability performance by considering the effect of firm environmental sensitivity as a moderating factor.

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Section: Introductionmentioning

confidence: 57%

Section: Ir and Sustainability Performancementioning

confidence: 99%

mentioning

confidence: 99%

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Integrated reporting quality and sustainability performance: does firms' environmental sensitivity matter?

Appiagyei

Donkor²

2023

JAEE

Self Cite

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“…A few studies have examined the relationship between the characteristics of the board of directors, audit committee characteristics, firm characteristics and IR practices. For MEDAR 31,6 example, Appiagyei et al (2022) aimed to explore the relationships and effects of corporate governance mechanisms on IR quality and sustainability performance. The study reported that the board effectiveness and external audit quality have significant effects on IR quality.…”

Section: Literature Reviewmentioning

confidence: 99%

The relationship between corporate governance mechanisms and integrated reporting practices and their impact on sustainable development goals: evidence from South Africa

Ahmed

2023

MEDAR

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Purpose The first purpose of this paper is to investigate whether corporate governance mechanisms, in particular the characteristics of the board, audit committee and risk management committee, are associated with the level of disclosure in integrated reports of South African listed firms. The second purpose of this paper is to analyze how integrated reporting (IR) affects the sustainable development goals (SDGs). Design/methodology/approach This paper uses a mixed methods approach. First, a multiple regression analysis is used to estimate the impact of corporate governance mechanisms on IR practices of a sample of South African listed firms during the period between 2019 and 2021. Using the content analysis method to measure the level of IR, disclosures were measured using a disclosure index consisting of 60 information items developed from the IIRC framework and previous studies. Second, based on a database containing 33 articles in the Meditari Accountancy Research journal with a publication date from 2013 to 2021, a systematic review of the academic literature focusing on IR is conducted to analyze how IR influences SDGs. Findings The results indicate that board size, board independence and risk management committee independence have a positive effect on IR practices. However, board expertise, board activity, audit committee independence, audit committee size, audit committee expertise, audit committee meetings, risk management committee expertise, risk management committee meetings, risk management committee size and the auditor type are negatively related to IR practices. The results also indicate that IR has an important role in achieving SDGs by relying on integrated thinking that integrates sustainability into the enterprise’s strategy and helps the integration of capitals. In addition, sustainable business models create long-term values. Research limitations/implications This study was limited to a sample size of 75 firms, which is country-specific; however, it sets the tone for future empirical research on the subject matter. This study provides an avenue for future research in the area of corporate governance and IR practices in other emerging countries, especially other African countries. Practical implications This study provides useful insights for managers and policymakers to better understand which corporate governance mechanisms can best encourage a company to improve IR practices. Originality/value To the best of the author’s knowledge, this study is, perhaps, the first to examine the effect of risk management committee characteristics on IR practices. This study provides new insight into the contribution of accounting research toward the achievement of SDGs.

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“…Stakeholder theory contends that a firm must care for and should be accountable to a wider set of stakeholders, not merely shareholders (Freeman, 1984;Appiagyei et al, 2016). Instead of focusing exclusively on maximising shareholders' wealth, a firm must strive to satisfy all the stakeholders who are critical for a firm's success.…”

Section: Literature Review and Hypothesis Developmentmentioning

confidence: 99%

Board gender diversity and corporate social responsibility in an international setting

Kamran

Djajadikerta

Roni

et al. 2022

JAEE

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PurposeThis study examines how board gender diversity (BGD) interacts with the “tough vs tender” trait in country cultures in influencing firms' corporate social responsibility (CSR).Design/methodology/approachAn extensive set of environmental, social and governance (ESG) data of 5,748 firms from 70 countries were collected from Bloomberg terminal, and national-level data on “tough vs tender” societies were collected from the official website of Hofstede. The data were analysed using hierarchical multiple regression (HMR) and bootstrapping estimation techniques.FindingsThe findings show that BGD increases the extent of firms' CSR, with a more pronounced relationship in the tender than in the tough societies. Results are consistent in traditional (p-value based HMR) and robust (confidence intervals reliant bootstrapping) estimation techniques.Originality/valueThis study provides empirical evidence on tough vs tender societies' moderating role in the relationship between BGD and CSR from a rounded international setting. It also raises interesting insights about the dynamics in boards' responses to institutional forces as an avenue for future research.

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The impact of corporate governance on integrated reporting (IR) quality and sustainability performance: evidence from listed companies in South Africa

Cited by 11 publications

References 103 publications

Integrated reporting quality and sustainability performance: does firms' environmental sensitivity matter?

Integrated reporting quality and sustainability performance: does firms' environmental sensitivity matter?

The relationship between corporate governance mechanisms and integrated reporting practices and their impact on sustainable development goals: evidence from South Africa

Board gender diversity and corporate social responsibility in an international setting

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