The Landscape of Integrated Reporting

The Landscape of Integrated Reporting

Copyright: © 2018 |Pages: 9
DOI: 10.4018/978-1-5225-3622-2.ch001


The aim of the current chapter is to set the main coordinates of the study. We make a broad literature review analysis in order to understand the process of integrating non – financial information in the annual report and the interrelations between sustainability/corporate social responsibility and financial information. The early integrated reporting literature is based on the socio- environmental literature, and explains the nature of disclosure, and integration, as key-elements for an integrated report. Corporations should be aware of what information to disclose in the IR and what integration actually means. In addition, an integrated report is not just a mixture of financial, sustainability, and CSR information. All these elements have to be connected and interrelated based on a business model approach.
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Overview Upon The Non- Financial Information Literature

This section of the book contains an overview on disclosure studies in the field of corporate reporting (Table 1). We use meta-analysis (Chavent et al., 2005) for presenting the process of disclosure. Meta- analysis represents a literature review with the purpose of finding interrelations between studies or even finds common issues with the currently developed research. In our case it is meant to bring new insights on disclosure mechanisms and determinants. Although this is only the first part of a broader research on the topic of integrated reporting, we have to begin by constructing disclosure scales that should measure IR disclosure levels and contribute to finding the determinants of disclosure phenomena (Chavent et al., 2005).

Table 1.
Summary of disclosure studies
CitationType of DisclosureSampleVariablesMethodologyResults - Variables or Factors That Influence the Level of Disclosure
Singhvi, 1968; Singhvi and
Desai, 1971; Buzby, 1975; Stanga, 1976
general disclosure40 - 155 companiesSize, industry, rate of return,
earnings margin, audit
firm, type of
management, number of
stockholders, listing status
disclosure index; univariate/multivariate regressionsSize, industry, management,
number of
stockholders, listing status,
Firth, 1979; McNally et al., 1982; Firth, 1984;voluntary disclosure52 - 180 companiessize, rate of return, growth, audit firm, industry, listing status; Corporate governance, cultural and firm-specificdisclosure index; univariatesize, listing status, industry
Tai et al., 1990; Wallace and Nasser 1995; Owusu-Ansah, 1998.mandatory disclosure28 - 84 companiesIndependent non-executive directors,
family control, profitability, leverage,
size, audit firm, ownership, age, multinational affiliation, profitability,
industry, liquidity
disclosure index; OSLMultinationality,
qualification, size
Cooke, 1989a; Cooke 1992;voluntary and mandatory disclosure35 - 138 companiesListing status, parent company relationship size, number of
shareholders, Cultural, legal, Culture, national, financial systems
multivariate/liniar regressionsCommon law,
Williams, 2001 * voluntary environmental and social disclosure356 companiesCulture, political and
civil system, legal
system, level of
economic development,
Content analysis
(number if
sentences); 3 linear regressions
political and civil
Gray et al., 2001 * social and
100 companiesProfit, turnover, capital
employed, industry
classification, number of
8 measures of
(CSEAR Social
Database; O.L.S regressions
not relevant

Source: Adapted from Chavent et al., 2005.

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