Theoretical frameworks applied in integrated reporting and sustainability reporting research

Abstract

Background: Over the last few decades, with the emergence of integrated reporting (IR) and sustainability reporting (SR) as new reporting methods, corporate reporting practices attracted substantial interest as a topic of research. Throughout the literature, many theories have been adopted to explain IR and SR practices and there is currently an increased focus on nonfinancial reporting. Aim:The purpose of this study is to identify and analyse the theories used in the growing body of IR and SR research, to gather insight into current trends in the use and dominance of these theories in the related literature.Setting: Research articles in the Scopus database for the period spanning from 2010 to 2019 were included in the study.Method: Using a systematic review methodology, 574 articles on IR and SR published in the Scopus database for the period spanning from 2010 to 2019, were systematically searched for the presence of theories that may be used to explain these practices. Results:The results show that the most dominant theories in the last decade are the legitimacy, stakeholder, institutional, agency and signalling theories. Conclusion:Supported by extensive numerical data, this research provides insights into the theoretical perspectives used in the study of IR and SR and contributes to the existing discourse surrounding applicable theoretical frameworks for studying corporate reporting practices. These insights can be used to study IR and SR as the world grapples with changes in the reporting and business environment.

Sustainability reporting: Current state and challenges

“…Thematic analysis also unveils various reporting phenomenon which were explained in conjunction with theories. Prominent theories in the field are Stakeholder theory (Fuadah et al, 2022; Hörisch et al, 2020; Lakhani & Herbert, 2022; Ruiz‐Lozano et al, 2021; Sepúlveda‐Alzate et al, 2021) given by freeman widely used to explain ethical organisation management while considering impact of business decisions on various stakeholders. It talks about influence of values and morals in business management.…”

Sustainability Report and Financial Performance: Evidence from Mining Companies in Indonesia

“…In this case, companies are considered to have more complete information about their business performance and prospects than investors. Signalling theory suggests that companies that provide more detailed and transparent information through financial reports can increase company value (Mahmood et al, 2019); (Lakhani and Herbert, 2022). In the context of sustainability reports, companies that openly disclose information about their environmental and social performance have the potential to improve their reputation and are perceived as better than those that do not make additional disclosures.…”