Quantitative impacts of mandatory integrated reporting
Elaine Conway
Journal of Financial Reporting and Accounting, 2019, vol. 17, issue 4, 604-634
Abstract:
Purpose - This paper aims to examine the impact of the 2011 mandatory introduction of integrated reporting ( ) on the financial performance, risk and institutional shareholding of listed companies in South Africa to assess whether there is a benefit to and which may encourage greater adoption of it globally. It contrasts the results with two other African stock exchanges (Nigeria and Egypt with no mandatory ) and examines whether quality also has an impact on these and on environmental, social and governance (ESG) disclosure scores. Design/methodology/approach - A series of multivariate ordinary least squares regressions was estimated on a range of financial, risk, institutional and ESG data from firms on the three African stock exchanges, between 2006 and 2015. Findings - Financial performance and risk in South African firms appear to have decreased since the start of mandatory reporting, but institutional shareholding has increased. The production of higher quality reports is associated with decreased financial performance and risk, higher institutional shareholding and increased ESG scores. Originality/value - This study is first to test the quantitative effects of and quality on a broad range of financial performance and risk measures and the level of institutional shareholding. It also adds to the literature by assessing how the quality of can impact the ESG scoring of the business. Hence, this study is of interest to firms looking to adopt for its benefits and to regulatory bodies considering the mandatory adoption of in support of achievement of national social and environmental goals.
Keywords: Risk management; South Africa; Integrated reporting; Financial performance; Financial reporting; ESG; Institutional shareholding (search for similar items in EconPapers)
Date: 2019
References: Add references at CitEc
Citations: View citations in EconPapers (7)
Downloads: (external link)
https://www.emerald.com/insight/content/doi/10.110 ... d&utm_campaign=repec (text/html)
https://www.emerald.com/insight/content/doi/10.110 ... d&utm_campaign=repec (application/pdf)
Access to full text is restricted to subscribers
Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:eme:jfrapp:jfra-08-2018-0066
DOI: 10.1108/JFRA-08-2018-0066
Access Statistics for this article
Journal of Financial Reporting and Accounting is currently edited by Prof. Aziz Jaafar and Prof Khaled Hussainey
More articles in Journal of Financial Reporting and Accounting from Emerald Group Publishing Limited
Bibliographic data for series maintained by Emerald Support ().