An Exploration of Integrated Reporting and Its Applicability: A Stakeholder Perspective

Zhou, Tiran

Abstract

Integrated reporting (IR) is an emerging corporate practice shaped by market forces and regulations. The organisations (IIRC, 2021; IDSA, 2016) and scholars (Abeysekera, 2013; Branwijck, 2012; and Eccles & Krzus, 2010) developed the five IR approaches based on their requirements. The study aims to explore the applicability of IR from a stakeholder perspective, particularly on guiding principles and content elements aspects. Quantitative content analysis and semi-structured in-depth interviews are employed to investigate the companies’ IR disclosure and stakeholders’ perceptions.

The study provides evidence of an apparent gap between the companies’ IR disclosure and stakeholders’ perceptions. The content analysis results suggest that financial performance is the most highlighted content element in the sample, followed by governance. The result is different from IIRC’s strategic focus approach. The findings of the interviews provide evidence that strategy, business model, and risk management are the three primary content elements, and materiality, connectivity, and conciseness are the three primary guiding principles of IR from the stakeholders’ perspective. However, it is challenging for stakeholders to assess the guiding principles of IR because of the limited explanations provided in the IR framework.

The thesis is the first study, including all the identified guiding principles and content elements of IR. The study discusses multiple guiding principles and content elements of IR, providing a comprehensive view of the IR for future research. The study also provides practical implications for policymakers, companies, and stakeholders. The policymakers should provide more detailed explanations regarding some core concepts of IR (e.g., conciseness, materiality, and business model). The companies engaging with IR should consider the demands and requirements of stakeholders for more information about corporate strategy and business model. Finally, standard setters and stakeholders should consider the important role of quantitative thresholds when assessing materiality in IR.

• Thesis Type: Thesis
• Deposit Date: Aug 21, 2023
• Publicly Available Date: Aug 21, 2023
• DOI: https://doi.org/10.17869/enu.2023.3175453
• Award Date: Jul 6, 2023