Quantitative impacts of mandatory integrated reporting

Journal article


Conway, E. 2019. Quantitative impacts of mandatory integrated reporting. Journal of Financial Reporting and Accounting. https://doi.org/10.1108/JFRA-08-2018-0066
AuthorsConway, E.
Abstract

This paper examines the impact of the 2011 mandatory introduction of integrated reporting (IR) on the financial performance, risk and institutional shareholding of listed companies in South Africa to assess whether there is a benefit to IR and which may encourage greater adoption of it globally. It contrasts the results with two other African stock exchanges (Nigeria and Egypt with no mandatory IR) and examines whether IR quality also has an impact on these and on Environmental, Social and Governance (ESG) disclosure scores. A series of multivariate ordinary least squares regressions were estimated on a range of financial, risk, institutional and ESG data from firms on the three African stock exchanges, between 2006-2015. Financial performance and risk in South African firms appear to have decreased since the start of mandatory reporting, but institutional shareholding has increased. The production of higher quality reports is associated with decreased financial performance and risk, higher institutional shareholding and increased ESG scores. This study is first to test the quantitative effects of IR and IR quality on a broad range of financial performance and risk measures and the level of institutional shareholding. It also adds to the literature by assessing how the quality of IR can impact the ESG scoring of the business. Hence this study is of interest to firms looking to adopt IR for its benefits and to regulatory bodies considering the mandatory adoption of IR in support of achievement of national social and environmental goals.

KeywordsIntegrated reporting; South Africa; financial performance; risk management; institutional shareholding; ESG
Year2019
JournalJournal of Financial Reporting and Accounting
PublisherEmerald
ISSN19852517
Digital Object Identifier (DOI)https://doi.org/10.1108/JFRA-08-2018-0066
Web address (URL)http://hdl.handle.net/10545/624335
hdl:10545/624335
Publication dates02 Dec 2019
Publication process dates
Deposited13 Dec 2019, 12:08
AcceptedMay 2019
ContributorsUniversity of Derby
File
File Access Level
Open
Permalink -

https://repository.derby.ac.uk/item/93517/quantitative-impacts-of-mandatory-integrated-reporting

Download files

  • 65
    total views
  • 0
    total downloads
  • 0
    views this month
  • 0
    downloads this month

Export as

Related outputs

Steps on the Journey to Net Zero
Kamal, Y. and Conway, E. 2023. Steps on the Journey to Net Zero. in: Crowther, D. and Seifi, S. (ed.) Achieving Net Zero: Challenges and Opportunities Leeds Emerald Publishing Limited. pp. 3-24
Integrated reporting
Conway, E., Robertson, Fiona and Ugiagbe-Green, Iwi 2021. Integrated reporting. in: Palgrave.
Construction And factorial validation of a short version of the Academic Motivation Scale
Kotera, Y., Conway, E. and Green, Pauline 2021. Construction And factorial validation of a short version of the Academic Motivation Scale. British Journal of Guidance & Counselling. https://doi.org/10.1080/03069885.2021.1903387
Ethical judgement and intent in business school students: the role of the psyche?
Conway, E. and Kotera, Y. 2020. Ethical judgement and intent in business school students: the role of the psyche? International Journal of Ethics Education. https://doi.org/10.1007/s40889-020-00094-z
Did removing prudence from the Conceptual Framework impact accounting conservatism?
Conway, E. 2020. Did removing prudence from the Conceptual Framework impact accounting conservatism? International Journal of Banking Accounting and Finance. https://doi.org/10.1504/IJBAAF.2020.110309
To agree or disagree? An analysis of CSR ratings firms
Conway, E. 2019. To agree or disagree? An analysis of CSR ratings firms. Social and Environmental Accountability Journal. https://doi.org/10.1080/0969160X.2019.1613248
Technology challenges in accounting and finance.
Crookes, Elizabeth and Conway, E. 2018. Technology challenges in accounting and finance. in: Palgrave Macmillan.
Should we expect exemplary integrated reporting to increase organisational ESG ratings?
Conway, E. 2018. Should we expect exemplary integrated reporting to increase organisational ESG ratings? in: Springer.
Ethical judgement in UK business students: relationship with motivation, self-compassion and mental health.
Kotera, Y., Conway, E. and Van Gordon, William 2018. Ethical judgement in UK business students: relationship with motivation, self-compassion and mental health. International Journal of Mental Health and Addiction. https://doi.org/10.1007/s11469-018-0034-2
The future of accountancy – beyond the numbers.
Conway, E. 2018. The future of accountancy – beyond the numbers. in: Palgrave Macmillan.
Technology challenges in accounting and finance.
Crookes, Elizabeth and Conway, E. 2018. Technology challenges in accounting and finance. in: Springer.
Sustainability, the triple bottom line and corporate social responsibility.
Conway, E. 2018. Sustainability, the triple bottom line and corporate social responsibility. in: Palgrave Macmillan.
Mental health of UK university business students: Relationship with shame, motivation and self-compassion
Kotera, Y., Conway, E. and Van Gordon, William 2018. Mental health of UK university business students: Relationship with shame, motivation and self-compassion. Journal of Education for Business. https://doi.org/10.1080/08832323.2018.1496898
CSR, financial performance and risk: Does it add up for mid-caps?
Conway, E. 2017. CSR, financial performance and risk: Does it add up for mid-caps? British Academy of Management.
Does good integrated reporting improve corporate social responsibility?
Conway, E. 2017. Does good integrated reporting improve corporate social responsibility?
A study of adoption rates and financial effects of IFRS for SMEs
Conway, E. 2017. A study of adoption rates and financial effects of IFRS for SMEs.
Corporate social responsibility in French listed companies – good for performance, poor for risk?
Conway, E. 2017. Corporate social responsibility in French listed companies – good for performance, poor for risk? Centre for Social and Environmental Accounting Research.
Measuring carbon: An organisational management perspective.
Conway, E. 2017. Measuring carbon: An organisational management perspective. in: Palgrave Macmillan.
Engaging small and medium-sized enterprises (SMEs) in the low carbon agenda
Conway, E. 2015. Engaging small and medium-sized enterprises (SMEs) in the low carbon agenda. Energy, Sustainability and Society. https://doi.org/10.1186/s13705-015-0060-x
Assessing sustainability support to small and medium sized enterprises (SMEs)
Conway, E. 2014. Assessing sustainability support to small and medium sized enterprises (SMEs). International Journal of Performability Engineering.
Does corporate social responsibility pay?
Conway, E. 2014. Does corporate social responsibility pay? Critical Perspectives on Business Management.
Is UK Financial Reporting Becoming Less Prudent?
Conway, E. 2014. Is UK Financial Reporting Becoming Less Prudent? European Journal of Economics and Management.