Non-financial reporting has gained major relevance within the past decades. However, criticism on traditional financial and non-financial reporting has grown as well. Aiming to solve the multifarious problems, integrated reporting was introduced and is currently gaining attention. As opposed to the surface impression, integrated reporting is more than a pure combination of the traditional reports. It requires management to reassess all corporate activities. Certainly, this brings major challenges, but comprehensive benefits are likely to exist as well. Our research addresses the following areas:
Voluntary sustainability reporting vs. integrated reporting
Whereas the determinants of the decision to voluntarily disclose sustainability reports are widely examined, it is unknown whether these are relevant for integrated reporting, too. Using institutional theory, we identify a set of potential country-related determinants of integrated reporting and empirically test their relevance. The results have been presented at national and international conferences and in a peer-reviewed journal recently. More information can be found here.
Benefits and challenges of integrated reporting – Lessons from South Africa
South Africa is the first country worldwide, requiring its listed companies to publish an integrated report or to explain why they are not doing so. Based on a series of semi-structured personal interviews we explore the benefits and challenges of integrated reporting. Our study reveals that integrated reporting brings far-reaching benefits to companies, but also to stakeholders. Numerous challenges of integrated reporting are unveiled as well, but interviewees expect them to lower after having gone through the learning curve.