The readability of integrated reports

Abstract

Purpose -This is an exploratory study to investigate the readability of integrated reports. The aim is to assess whether integrated reports are accessible to their readership and add value to Research limitations/implications -The main limitation of the study lies in its exclusivelySouth African setting, which is the only country where integrated reports are recommended as part of stock exchange listings requirements. Another limitation is the fact that integrated reports are mainly aimed at informed users and is thus compiled with the informed reader in mind, which impacts on general readability. Practical implications -The results present new findings regarding integrated reportingpractice, which is of interest to firms, investors, regulators, amongst others. The findings show how the value-added by integrated reports could be improved.Originality/value -This study is the first to investigate the readability of integrated reports in a South African context. The results indicate that integrated reports are difficult to read and are only useful to a portion of the total intended population.

A practice theoretical analysis of the irrelevance of integrated reporting to mainstream sell‐side analysts

“…Hence, we argue that acceptance of IR as an unbiased source of information would require widespread adoption of IR and visible and sustained improvements across companies in the disclosure of material matters that have negative consequences (see Lai et al ., ). Recent evidence that the language used in integrated reports impairs readability (Du Toit, ) and the amount of information provided in integrated reports is decreasing (Du Toit et al ., ) suggests the need for significant improvement in the adherence to the spirit of the IR Framework.…”

Evaluating the integrated reporting journey: insights, gaps and agendas for future research

“…Empirical research investigating specific aspects of IR practice provided insights into how integrated thinking is considered and applied within organizations (Oliver et al, 2016;Venter et al, 2017). Accounting scholars have highlighted how specific principles of IR are implemented by preparers (du Toit, 2017;Lai et al, 2017;Silvestri et al, 2017). Setia et al (2015) analyzed the effect of the introduction of IR regulation while other studies investigated the role and the effectiveness of internal auditing in the context of integrated reports (Haji, 2015;Haji and Anifowose, 2016).…”

Determinants of materiality disclosure quality in integrated reporting: Empirical evidence from an international setting

“…The value that stakeholders derive from the integrated report is affected by its readability (du Toit, ). Whereas readability has been shown to affect users of financial and nonfinancial reporting (Abu Bakar & Ameer, ; Lehavy, Li, & Merkley, ; Loughran & McDonald, ), this effect should be especially strong for IR, given its narrative character, which facilitates the dialogue with different stakeholder groups (Higgins et al, ; Lai, Melloni, & Stacchezzini, ).…”