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Integrated Reporting

Useful for investors?

by Stefan Hannen (Author)
©2017 Thesis XXVIII, 298 Pages

Summary

The introduction of Integrated Reporting (IR) is supposed to tackle shortcomings of corporate reporting that have been criticized for decades. The new reporting format intends to improve the understandability of corporate reports and broaden their often merely financial and backward-looking perspective. This study investigates the usefulness of IR for investors. A conceptual analysis provides an in-depth examination of the IIRC’s International <IR> Framework, the basis to prepare integrated reports. An empirical analysis examines the presence of IR in existing reports from South Africa and the USA, before testing potential consequences for the capital market. The findings have implications not only for investors, but also for the reporting firms, regulators and academics.

Table Of Contents

  • Cover
  • Title
  • Copyright
  • About the author
  • About the book
  • This eBook can be cited
  • Contents overview
  • Contents
  • List of figures
  • List of tables
  • List of abbreviations
  • List of symbols
  • 1 Introduction
  • 1.1 Motivation and objective of the study
  • 1.2 Scientific research strategy
  • 1.3 Outline of the study
  • 2 The Integrated Reporting approach
  • 2.1 History and institutional background
  • 2.2 The International <IR> Framework
  • 2.2.1 Overview of basic characteristics of IR, the IR Framework and its use
  • 2.2.2 Fundamental Concepts
  • 2.2.3 Guiding Principles
  • 2.2.4 Content Elements
  • 2.3 Critical discussion of the Framework
  • 2.3.1 The purpose of an integrated report
  • 2.3.2 Guiding Principles
  • 2.3.3 Content Elements
  • 3 Corporate reporting in South Africa and the USA
  • 3.1 Corporate reporting in South Africa
  • 3.1.1 Economic and historical background
  • 3.1.2 Institutions regulating corporate reporting
  • 3.1.3 Regulations on corporate reporting
  • 3.1.4 Summary of the South African reporting landscape
  • 3.2 Corporate reporting in the USA
  • 3.2.1 Economic and historical background
  • 3.2.2 Institutions regulating corporate reporting
  • 3.2.3 Regulations on corporate reporting
  • 3.2.4 Summary of the US reporting landscape
  • 4 Integrated Reporting in practice
  • 4.1 State of research
  • 4.2 Theory and hypotheses development
  • 4.2.1 Principal Agent Theory
  • 4.2.2 Positive Accounting Theory
  • 4.2.3 Systems-oriented theories
  • 4.2.4 Hypotheses development
  • 4.3 Methodology
  • 4.3.1 Sample
  • 4.3.2 Content analysis catalogue
  • 4.3.2.1 Content analysis
  • 4.3.2.2 Elements of the catalogue
  • 4.3.2.3 Data collection and scoring
  • 4.4 Results
  • 4.4.1 Basic characteristics of the reports
  • 4.4.2 The degree of Integrated Reporting
  • 4.4.2.1 Total Integrated Reporting score
  • 4.4.2.2 Sub-scores on the Guiding Principles
  • 4.4.3 Supplementary measures
  • 4.4.4 Summary of the results
  • 4.5 Discussion
  • 5 Capital market consequences of Integrated Reporting
  • 5.1 State of research
  • 5.2 Theory and hypothesis development
  • 5.2.1 The investor underreaction effect
  • 5.2.2 Moderation of investor underreaction by Integrated Reporting
  • 5.2.3 Hypothesis development
  • 5.3 Methodology
  • 5.3.1 Regression models
  • 5.3.2 Variables
  • 5.3.3 Assumptions of the OLS regressions
  • 5.4 Results
  • 5.4.1 Univariate and bivariate analyses
  • 5.4.2 Regression analysis
  • 5.4.2.1 Basic model: the investor underreaction effect
  • 5.4.2.2 Moderation of the investor underreaction effect by IR
  • 5.4.2.3 Robustness tests
  • 5.5 Discussion
  • 6 Summary and conclusions
  • 6.1 Summary of the conceptual and the empirical analysis
  • 6.2 Implications
  • 6.3 Limitations and outlook
  • Appendix
  • Web appendix
  • Bibliography
  • List of cited annual (integrated) reports
  • List of cited laws, regulations, standards and guidance materials
  • Series index

Contents

List of figures

List of tables

List of abbreviations

List of symbols

1     Introduction

       1.1   Motivation and objective of the study

       1.2   Scientific research strategy

       1.3   Outline of the study

2     The Integrated Reporting approach

       2.1   History and institutional background

       2.2   The International <IR> Framework

               2.2.1     Overview of basic characteristics of IR, the IR Framework and its use

               2.2.2     Fundamental Concepts

               2.2.3     Guiding Principles

               2.2.4     Content Elements

       2.3   Critical discussion of the Framework

               2.3.1     The purpose of an integrated report

               2.3.2     Guiding Principles

               2.3.3     Content Elements

3     Corporate reporting in South Africa and the USA

       3.1   Corporate reporting in South Africa

               3.1.1     Economic and historical background

               3.1.2     Institutions regulating corporate reporting

               3.1.3     Regulations on corporate reporting

               3.1.4     Summary of the South African reporting landscape

       3.2   Corporate reporting in the USA

               3.2.1     Economic and historical background

               3.2.2     Institutions regulating corporate reporting

               3.2.3     Regulations on corporate reporting ← xi | xii

               3.2.4     Summary of the US reporting landscape

4     Integrated Reporting in practice

       4.1   State of research

       4.2   Theory and hypotheses development

               4.2.1     Principal Agent Theory

               4.2.2     Positive Accounting Theory

               4.2.3     Systems-oriented theories

               4.2.4     Hypotheses development

       4.3   Methodology

               4.3.1     Sample

               4.3.2     Content analysis catalogue

               4.3.2.1   Content analysis

               4.3.2.2   Elements of the catalogue

               4.3.2.3   Data collection and scoring

       4.4   Results

               4.4.1     Basic characteristics of the reports

               4.4.2     The degree of Integrated Reporting

               4.4.2.1   Total Integrated Reporting score

               4.4.2.2   Sub-scores on the Guiding Principles

               4.4.3     Supplementary measures

               4.4.4     Summary of the results

       4.5   Discussion

5     Capital market consequences of Integrated Reporting

       5.1   State of research

       5.2   Theory and hypothesis development

               5.2.1     The investor underreaction effect

               5.2.2     Moderation of investor underreaction by Integrated Reporting

               5.2.3     Hypothesis development

       5.3   Methodology

               5.3.1     Regression models

               5.3.2     Variables

               5.3.3     Assumptions of the OLS regressions ← xii | xiii

       5.4   Results

               5.4.1     Univariate and bivariate analyses

               5.4.2     Regression analysis

               5.4.2.1   Basic model: the investor underreaction effect

               5.4.2.2   Moderation of the investor underreaction effect by IR

               5.4.2.3    Robustness tests

       5.5   Discussion

6     Summary and conclusions

       6.1   Summary of the conceptual and the empirical analysis

       6.2   Implications

       6.3   Limitations and outlook

Appendix

Web appendix

Bibliography

List of cited annual (integrated) reports

List of cited laws, regulations, standards and guidance materials ← xiii | xiv ← xiv | xv →

List of figures

Figure 1-1:      Components of S&P 500 market value

Figure 1-2:      Conception of the study

Details

Pages
XXVIII, 298
Year
2017
ISBN (PDF)
9783631733233
ISBN (ePUB)
9783631733240
ISBN (MOBI)
9783631733257
ISBN (Hardcover)
9783631732472
DOI
10.3726/b11722
Language
English
Publication date
2017 (October)
Keywords
Annual Report South Africa USA Non–financial Disclosures Capital Market Conceptual Analysis
Published
Frankfurt am Main, Bern, Bruxelles, New York, Oxford, Warszawa, Wien, 2017. XXVIII, 298 pp., 43 b/w ill., 35 b/w tables

Biographical notes

Stefan Hannen (Author)

Stefan Hannen studied Business Administration at the University of Münster (Germany) and at Monash University in Melbourne (Australia). He worked as a research assistant for the Chair of International Accounting at the University of Münster.

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328 pages