Does institutional theory explain integrated reporting adoption of Fortune 500 companies?

Kılıç, Merve; Uyar, Ali; Kuzey, Cemil; Karaman, Abdullah S.

doi:10.1108/jaar-04-2020-0068

Cited by 33 publications

(26 citation statements)

References 67 publications

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“…Our findings highlight a positive (0.0641) and statistically significant relationship between B_DIV and IRQ ( p < 0.05). Our finding is consistent with the results of Kilic and Kuzey (2020) who use data from Fortune 500 companies. Hence, the presence of women on the board of directors has a positive impact on the IRQ.…”

Section: Results Analysis and Discussionsupporting

confidence: 92%

Do board directors and good corporate governance improve integrated reporting quality? The moderating effect of CSR: an empirical analysis

Chouaibi

Belhouchet

Almallah

et al. 2021

EMJB

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PurposeThis paper targets to shed light on the relationship between board characteristics, good corporate governance and the integrated reporting quality (IRQ) and even if this relationship is moderated by the corporate social responsibility.Design/methodology/approachData from a sample of 185 European firms selected from STOXX 600 Index between 2010 and 2019 are used to test the model using panel data and multiple regression. This paper is motivated by using panel data estimated feasible generalized least squares method. A multiple regression model is used to analyze the moderating effect of the corporate social responsibility on the association between board characteristics, good corporate governance and the IRQ.FindingsConsistent with the expectations, the results showed that there is a positive relationship between board independence, board diversity, good corporate governance and IRQ. Furthermore, the findings suggest that moderating effect positively affects the relationship between the board characteristics, good corporate governance and IRQ.Practical implicationsThe results of this study have an impact on policymakers. The presence of women and independent members of the board should be encouraged. This has a positive effect on the availability of high-quality information, able to drive investment levels and stakeholder participation.Originality/valueThis study supports the existing literature. First, it expands the scientific debate on the topic of integrated reporting (IR). Second, it extends the scope of agency theory, which is rarely used to explain IR-related phenomena. This study is one of the first to examine the moderating effect of corporate social responsibility on the association between a set of governance characteristics (i.e. Board independence and board diversity) and integrated reporting adoption.

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Section: Results Analysis and Discussionsupporting

confidence: 92%

Do board directors and good corporate governance improve integrated reporting quality? The moderating effect of CSR: an empirical analysis

Chouaibi

Belhouchet

Almallah

et al. 2021

EMJB

View full text Add to dashboard Cite

show abstract

Section: Methodsmentioning

confidence: 99%

“…Under the proposed approach, 0 points is given to non-compliance and 1 is given when firms disclose items of energy disclosure. Secondary data on moderating variables were obtained by the Global Competitiveness Report index for the period of five years (2016-2020) which is considered as a global institutional strength (Kılıç et al, 2020). Descriptive statistics were performed basically to summarize the data into a manageable form and to test the extent of compliance with energy disclosure by the selected firms.…”

Section: Measurement Of the Variablesmentioning

confidence: 99%

Corporate board gender, institutional strength and energy disclosure in Nigeria

Jibril¹,

Isa

Maigoshi

2022

JCEFTS

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Purpose The study aims to evaluate the impact of corporate board gender on the energy disclosure with moderating effect of institutional strength (global competitiveness index) by the listed firms in Nigeria. Design/methodology/approach The study uses a sample of 49 non-financial firms listed on the floor of the Nigerian stock exchange commission for the period of five years (2016–2020). The study uses content analysis techniques to obtain data on environmental disclosure through the use of Global Reporting Initiative standards from the sampled firms. Random and fixed effect regression analyses were run for both direct and moderation models. Based on the results of the Hausman tests, random results were adopted and used in examining the relationship among research variables. Findings The study revealed average energy disclosure by the sampled firms. The overall results of the regression analysis found that board gender diversity is significantly related to energy disclosure. The institutional strength moderation result was found to have an insignificant impact on the relationship between board gender and energy disclosure. Research limitations/implications The study is constrained by not considering all environmentally sensitive firms in the country. Furthermore, the study considered only gender among numerous important board attributes. Hence, other important board attributes should be assessed for better energy disclosure. Future studies should consider data from all sensitive firms and other board attributes. Practical implications Recently, the Nigerian Government mandates all firms to comply with environmental disclosure in Nigeria, this should be used as a way forward to encourage and compel all listed firms to improve their energy disclosure. Social implications With diverse and vibrant women on boards, firms would benefit and gain legitimacy across demographic, ethnic and religious groups in the society. Hence, corporate bodies can effectively contribute toward enhancing the social welfare of various segments of society. Originality/value To the best of the authors’ knowledge, this is the first study that provides empirical evidence on the effect of board gender attributes on the energy disclosure using institutional strength as a moderator in Nigeria.

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“…Cortesi and Vena (2019) defined IR as the disclosure of information about a firm's value creation and economic activities and its relationship with the environment and society. Similarly, IR is the means by which firms notify stakeholders about their various activities related to economic, environmental, social and governance issues (Adhariani and de Villiers, 2019; Vitolla et al , 2020; Kilic et al , 2020).…”

Section: Literature Reviewmentioning

confidence: 99%

Integrated reporting and cost of capital in sub-Saharan African countries

Maama

Marimuthu

2021

JAAR

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PurposeGiven the significant role of both integrated reporting and cost of capital in the survival and prosperity of a firm, it is essential to understand their relationship by investigating whether integrated reporting influences the cost of capital of a firm. This research paper aims to examine the impact of integrated reporting practice on the cost of capital of listed firms in sub-Saharan Africa (SSA).Design/methodology/approachThe study covered a period of 10 years from 2009 to 2018. One hundred and forty-seven listed firms in 10 SSA countries were used for the study. The study employed panel data analysis and utilised a dynamic estimation technique called the generalised method of moments.FindingsThe evidence shows that integrated reporting has a negative relationship with cost of capital, indicating integrated reporting can reduce firms' cost of capital. The results further showed that social, governance and environmental disclosures all have negative relationships with cost of capital, suggesting that firms that make these disclosures would have a lower cost of capital. These results are consistent with signalling theory, which holds that firms send a positive signal to the market about their performance and prospects when they provide information relating to value creation, predominantly environmental, social and governance issues.Research limitations/implicationsThe major limitation of the study is the selection of only English-speaking countries. French-speaking countries may have a different reporting practice, hence a different effect on the cost of capital.Practical implicationsThis study contributes to policy development on integrated reporting in SSA and informs key stakeholders involved in promoting and supporting the adoption of integrated reporting in Africa.Originality/valueThe findings from this paper consolidate existing research in integrated reporting and cost of capital by providing empirical evidence on the relationship between integrated reporting, its components and the cost of capital from emerging economies. This study contributes to the understanding of investors' reactions to integrated reporting. Further, it fills a gap in the non-availability of literature on the relative impact of the various components of integrated reporting.

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Does institutional theory explain integrated reporting adoption of Fortune 500 companies?

Cited by 33 publications

References 67 publications

Do board directors and good corporate governance improve integrated reporting quality? The moderating effect of CSR: an empirical analysis

Do board directors and good corporate governance improve integrated reporting quality? The moderating effect of CSR: an empirical analysis

Corporate board gender, institutional strength and energy disclosure in Nigeria

Integrated reporting and cost of capital in sub-Saharan African countries

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