Nonfinancial value creation of integrated reporting

Cintia de Melo de Albuquerque Ribeiro, Flavio Ezequiel, Luis Perez Zotes and Julio Vieira Neto

Journal of Financial Reporting and Accounting, 2022, vol. 22, issue 3, 677-700

Abstract: Purpose - This paper aims to explore the nonfinancial drivers of value creation that influence an investment decision and present a set of drivers that contribute with a useful integrated reporting to its providers of financial capital using evidence from Brazil. Design/methodology/approach - This paper is based on a systematic literature review in the Scopus, Web of Science and Google Scholar databases in the period from 2005 to 2020. Interpretive content analysis is used in 42 documents identified to explore nonfinancial drivers to demand by providers of financial capital, which are classified according to the capitals nonfinancial suggested by the integrated report (IR). Then, the results are evaluated by Brazilian professional investors in a focus group. Findings - The members of the focus group do not consider the IR relevant to investment decision and neither the information about natural capital nor social capital. They highlighted two nonfinancial drivers of value not identified in the previous literature. Research limitations/implications - The focus group is limited by subjects’ availability and by the participants’ number. But its results represent initial discussions on the subject in the Brazilian context. Practical implications - The results of this study have value, principally, to investors, target audience of IR, because it aligns your demands with the IRs content, improving its usefulness. Originality/value - To the best of the authors’ knowledge, this manuscript is the first study to investigate the perception of Brazilian professional investors about the importance of the IR in investment decision-making and to identify content relevant to the financial capital provider’s investment decision, which can improve the usefulness of IR.

Keywords: Integrated report; Nonfinancial information; Nonfinancial drivers; Intellectual capital; Value creation; Investment decision; Investors (search for similar items in EconPapers)
Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:eme:jfrapp:jfra-10-2021-0332

DOI: 10.1108/JFRA-10-2021-0332

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