The role of ownership structure in integrated reporting policies

Abstract

Integrated reporting (IR) is used to demonstrate a firm's capacity to create value in the short, medium, and long term. It can better represent existing relationships between the company and its stakeholders, with a particular focus on investors. Attention to IR has grown considerably in recent years. However, studies on the determinants of IR quality are still limited. This study aims to bridge this literature gap by being the first study to analyse the role of ownership structure in IR context. To this end, it uses agency theory and is based on a sample of 152 international companies that have adopted IR. The results indicate a positive effect of institutional ownership and a negative effect of ownership concentration, managerial ownership and state ownership on the quality of integrated reports. These results are also consistent with the level of alignment of integrated reports with the <IR> framework. To our knowledge, this is the first study that analyses the role of ownership structure in the IR policies.

Board interlocks and greenhouse gas emissions

“…It equals one if a firm has a sustainability committee in a certain year. Theoretically, having sustainability committees affects sustainability reporting (Pucheta‐Martínez, Gallego‐Álvarez, & Bel‐Oms, 2019), integrated reporting (Raimo, Vitolla, Marrone, & Rubino, 2020), and CSR strategy (Orazalin, 2020) but does not affect GHG emissions intensity directly. Our correlation test confirms this.…”

The value relevance of corporate financial and nonfinancial information provided by the integrated report: A systematic review

“…Given the preliminary nature of the studies and their findings, the construct validity of the IR proxy used (IR self‐constructed indexes are based on subjective judgments) and the research design choices of these studies (i.e., to include all necessary control variables in the model, to run robustness checks, to control for endogeneity) are open to critique, and there are several opportunities for further research, for example, there are few studies comparing the value relevance of IR information with the value relevance of stand‐alone EG report (Mervelskemper & Streit, 2017; van der Meijden, 2016) and there is a paucity of empirical studies focused on the quality of IR information disclosure, and on the role played by an external form of assurance of nonfinancial information disclosed through IR on the association between IR information disclosure and the market value of the firm (Caglio, Melloni, & Perego, 2020; Gal & Akisik, 2020; Landau et al, 2020). Furthermore, there are few studies investigating the role of other external factors, such as cultural context, or internal factors, such as the board of directors or ownership structures, in affecting the IR/market outcomes association (Raimo, Vitolla, Marrone, & Rubino, 2020; Vena et al, 2020; Vitolla, Raimo, & Rubino, 2020). Furthermore, there is almost no research about the effects of IR on sustainability performance or on the connectivity of the information included in an IR.…”

The role of board of directors in intellectual capital disclosure after the advent of integrated reporting

“…In effect, following the integrated thinking approach, this tool can reveal the value creation process of a company, highlighting the interconnections between the three types of intellectual capital (structural, human, social and relationship) and the three remaining types of capital (financial, natural, manufactured) (IIRC, 2013). Therefore, integrated reporting makes it possible to understand how intangible resources and intellectual capital combine with physical resources (Raimo, Vitolla, Marrone, & Rubino, 2020; Vitolla, Raimo, & Rubino, 2019a, 2019b). In recent years, the importance of integrated reporting and its focus on intellectual capital has prompted some researchers to analyse the intellectual capital information contained in these reports (e.g.…”