Excellence Perspective for Management Education from a Global Accountants' Hub in Asia

Senaratne, Samanthi; Gunarathne, Nuwan

doi:10.4018/978-1-5225-1013-0.ch008

Cited by 10 publications

(10 citation statements)

References 11 publications

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“…Second, for academic educators and professional accounting bodies, this study points to the urgent need to make curriculum revisions to reflect the changes in the business context and resulting demands on the accounting profession. Previous studies have demonstrated that the Sri Lankan accounting education system has taken progressive steps to incorporate new developments in accounting such as IR and sustainability reporting in the curricula of academic accounting degree programs and professional accounting bodies [33,34,134]. Although these steps would have led to the creation of awareness of IR, they have not necessarily translated into the adoption of integrated thinking and holistic reporting systems to provide quality information through IR as shown in this study.…”

Section: Discussionmentioning

confidence: 81%

Does Corporate Governance Affect the Quality of Integrated Reporting?

2020

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This study examines how governance mechanisms affect the quality of integrated reporting (IR), which is fast emerging both as a tool to help firms understand their value creation process and to communicate effectively with external stakeholders. This study first developed an index to assess the quality of integrated reports. Subsequently, 132 integrated reports of Sri Lankan public listed companies selected over a three-year period were content analysed. The hypotheses formulated on the relationship between corporate governance and the quality of IR based on the agency theory were analysed using multivariate linear regression and panel regression. The results show that there is limited support from the corporate governance system for providing quality information to stakeholders on the value creation process through IR, except for board size and the availability of a separate risk management committee. This is the result of the heavy emphasis of corporate governance requirements and the resulting mechanisms of Sri Lankan companies on mandatory corporate reporting requirements compared to a voluntary reporting model such as IR. Since many corporate governance aspects are meant to fulfill mandatory reporting requirements, the results imply that the directors have given limited attention to providing quality information through voluntary disclosure practices such as IR, although they use resources to prepare integrated reports.

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Section: Discussionmentioning

confidence: 81%

Does Corporate Governance Affect the Quality of Integrated Reporting?

2020

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“…Second, the study is limited to a single country and a specific period during which the Sri-Lankan economy and stock market operations were at a declining stage. Further, Sri Lanka has a progressive accounting profession that has been keen to adopt new developments in accounting such as sustainability reporting and IR [16,73,74]. These factors could have an impact on the outcome of the study.…”

Section: Discussionmentioning

confidence: 99%

Does Integrated Reporting Enhance the Value Relevance of Information? Evidence from Sri Lanka

et al. 2020

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This paper examines the relationship between the level of integrated reporting (IR) based on the extent of adoption of the International Integrated Reporting Framework (IIRF) and the firm value (a proxy for value relevance of IR) in Sri Lanka, where the adoption of IR is a voluntary exercise. Using a comprehensive disclosure checklist, 117 integrated reports were content-analyzed, and then two regression models assessed the value relevance of IR disclosure. The study notes an increasing trend toward the adoption of IIRF in the preparation of integrated reports overall, as well as of each content element of IIRF. However, this rising trend has not significantly impacted the firm value by itself. Hence, this study’s findings do not support the enlightened stakeholder’s view on the subject of IR in Sri Lanka. Instead, it shows a significant positive relationship with the firm value when combined with the information on earnings (earnings per share), indicating that IIRF-compliant IR improves the value relevance of accounting information. This study offers insights for policymakers, professional accounting bodies, and practitioners on how investors make use of the information disclosed in integrated reports in their decision-making.

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“…Jensen and Berg (2012) are of the view that because of the newness of the concept, still business schools had not yet adopted IR in the German curricula exerting very negligible pressure on the profession. As Sri Lanka had become a hub of accountants (Senaratne and Gunarathne, 2016), we note that the accounting profession of the country (i.e. business schools, PABs and other related firms) is very active in this respect.…”

Section: Diffusion Stagementioning

confidence: 99%

Diffusion of integrated reporting in an emerging South Asian (SAARC) nation

Gunarathne

Senaratne

2017

MAJ

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137

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Purpose This paper aims to examine how and why integrated reporting (IR) as a managerial technology is diffused in Sri Lanka, an emerging South Asian (South Asian Association for Regional Cooperation) nation, from an expansion diffusion perspective. Design/methodology/approach The study followed two analytical steps. First, the adopter groups of IR of the country’s stock exchange were identified based on their annual reports. Second, the key stakeholders (both internal and external) in the process of IR diffusion in the country were interviewed. Thereafter, a content analysis of these semi-structured interviews was carried out based on the demand-pull and supply-push sides of the diffusion theory of innovation. Findings The temporal trend of IR suggests that the country is currently in the diffusion stage with many first time adopters are likely to join the bandwagon of IR. In the primary stage, its early adoption has been driven by the efficient-choice perspective. However, in the diffusion stage, most of the adopters are driven by fashion setting, which is mainly attributable to the active propagators in the supply side of IR diffusion. IR has been mainly a transition evolving through the incremental changes in sustainability reporting. Many firms have not internalized the IR principles with the danger of IR becoming a mere reporting mechanism. Originality/value The application of both demand-pull and supply-push sides of the diffusion theory of innovation is still limited, particularly in the case of new reporting mechanisms. The study provides new insights into how these two forces contribute to creating a “practice-reporting portrayal gap” in IR.

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Excellence Perspective for Management Education from a Global Accountants' Hub in Asia

Cited by 10 publications

References 11 publications

Does Corporate Governance Affect the Quality of Integrated Reporting?

Does Corporate Governance Affect the Quality of Integrated Reporting?

Does Integrated Reporting Enhance the Value Relevance of Information? Evidence from Sri Lanka

Diffusion of integrated reporting in an emerging South Asian (SAARC) nation

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