Integrated Reporting, Quality of Management, and Financial Performance

By Cécile Churet, Robert G. Eccles. Journal of Applied Corporate Finance, 2014

290 citations recorded by the source corpus.

Interest in integrated reporting continues to grow as its proponents cite a number of significant benefits to both companies and investors. But given the still‐early stages of development of this new management practice and the relative paucity of data, establishing empirical confirmation of these claims is difficult. Using RobecomSAM's proprietary database of over 2,000 companies surveyed during its annual Corporate Sustainability Assessment (CSA), the authors discuss the extent and recent growth of integrated reporting, and its likely effects on important indicators of both ESG quality of management and financial performance.The authors begin by reporting that although only 12% of the companies in the survey dataset practiced some form of integrated reporting in 2012, that number represented a 50% increase from 2011. The authors also report a strong relationship between integrated reporting and ESG quality of management, which some studies suggest has become a useful indicator of the overall effectiveness of management in creating value over the long term. This relationship is particularly strong in certain sectors, notably healthcare. At the same time, the authors find a relationship between integrated reporting and financial performance for two sectors—healthcare and information technology—though not for the population as a whole. The authors suggest that this apparent lack of effect may be attributable to a time lag between integrated reporting's contribution to better ESG quality of management, and the eventual reflection of such management in financial performance.

Subfields: Strategy and Management

View Paper: https://www.semanticscholar.org/paper/5e933dd40f6c4bf4a76e1041b0f29b612e6296b6

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In Strategy and Management

1. Patrick Velte
2. Martin Stawinoga
3. S. Senaratne
4. J. Atkins
5. T. Cooray
6. A. Gunarathne
7. W. Maroun

Citations in the corpus

• Integrated reporting: The current state of empirical research, limitations and future research implications (2016, background): “Churet and Eccles (2014) observe a positive link between the quality of overall ESG management and IR in the RobecoSAM database. According to Mio and Fasan (2014), the degree to which IR disclosures are considered as material differs between industries. Finally, Maniora (2015) analyses the impact of”
• Integrated reporting: A structured literature review (2016, unknown): “…studies that are empirical in nature, being E1: Case/Field study/Interviews (e.g., Van Bommel, 2014; Dumay & Dai, 2014); E2: Content Analysis/Historical analysis (e.g., Wild & van Staden, 2013); and E3: Surveys/Questionnaire/Other empirical (e.g., Churet et al., 2014; García-Sánchez et al., 2013).”
• Does Corporate Governance Affect the Quality of Integrated Reporting? (2020, background): “Hence, the first hypothesis can be constructed as follows:”
• Integrated reporting in South Africa in 2012: Perspectives from South African institutional investors (2015, background): “Finally, no effort is made to develop a “scale” for measuring the quantum or quality of disclosures included in integrated reports (for details in this regard, see Hindley and Buys, 2012; Solomon and Maroun, 2012; Carels et al., 2013; Churet and Eccles, 2014; Stent and Dowler, 2015).”