Investment considerations and impressions of integrated reporting

Abstract

Purpose Integrated reporting (IR) aims to improve the quality of information available to capital providers. While IR is associated with decreases in investor uncertainty and increases in firm value, it is unclear how IR information directly influences investment decisions. This paper aims to investigate the investment considerations of Taiwanese investors and their initial impressions of the International Integrated Reporting Framework (IIRC Framework). In doing so, this study examines the relationships between investment considerations and the IIRC Framework’s concepts. Design/methodology/approach Semi-structured interviews were undertaken with 16 investors in Taiwan. Thematic analysis was used to analyse the data collected. Findings In addition to economic and financial outlook, competitive advantages and ownership structure, Taiwanese investors emphasise management credibility as an important factor that influences investment decisions. Investors are reliant on private information sources and quantitative data. Sustainability disclosures and sustainability performance beyond legal requirements are often not considered. Taiwanese investors lack awareness of the IIRC Framework and are sceptical about the premise that integrated reports can provide information material to investment appraisal. The assertion that integrated reports reduce information asymmetry and influence investment decisions has to be treated with caution. Research limitations/implications Self-selection bias and a potential lack of transferability in the findings are issues inherent in the research method and sample used. Practical implications IR information needs to be frequently updated rather than disclosed in a periodic report. Furthermore, integrated reports need to demonstrate a direct link between non-financial performance and financial value creation. Social implications Mandating the supply of integrated reports is unlikely to influence investors’ capital allocation decisions unless investor demand is a driver of the regulation. Originality/value This study is one of the few to investigate IR from the investor’s perspective. Observations from this preliminary study warrant further investigations into the relevance of IR to investment communities globally.

Integrated Reporting: The Changing Nature of Accounting Profession

“…Of lesser importance were the benefits related to easier access to capital, increased share price and improving efficiency. The findings suggest that the information provided in IR may be of little use for capital market participants, which is consistent with the findings of Rensburg and Botha (2014) in South Africa, and Hsiao and Kelly (2018) in Taiwan. Figure 6.…”

تأثیر التقاریر المتکاملة على القیمة والأداء للشرکة: دلیل من مصر (باللغة الإنجلیزیة)

“…Debates are grown with complete explanations and applications that connect experts to their competent objects of providing information to meet the various needs of the investors and creditors (Boltanski and Thevenot, 2006). Hsiao and Kelly (2018); McNally, Cerbone, Maroun (2017); IIRC (2013) stated that integrated reporting should be an effective way of communication about how organization"s strategy, governance, prospects and performance, in the context of its external environment, can help in initiating the formation of the firm value over the short, medium and long term horizon. This can enhance the quality of existing information provided to capital providers and can help in delivering a holistic view of the organizational value creation process.…”

Haruskah Value Creation Hanya Terdapat Pada Integrated Reporting?

“…IR juga berperan mengurangi asimetri informasi antara pihak manajemen dan stakeholders (Wulf, Niemöller, & Rentzsch, 2014). Hal ini dibuktikan penelitian Hsiao & Kelly (2018) yang menyimpulkan bahwa IR di Taiwan ti dak hanya mengurangi asimetri informasi tetapi juga mempengaruhi pembuat keputu san investasi.…”

“…Integrated Reporting (IR) merupakan pelaporan yang dalam prosesnya memusat kan perhatian pada pemahaman dan pe ngomunikasian value creation perusahaan (Hsiao & Kelly, 2018). Tujuan IR adalah meningkatkan kualitas informasi yang ter sedia bagi penyedia capital dan memberikan pandangan holistik mengenai aktivitas va lue creation (IIRC, 2013).…”