Original Research

Firm characteristics and excellence in integrated reporting

Natasha Buitendag, Gail S. Fortuin, Amber de Laan
South African Journal of Economic and Management Sciences | Vol 20, No 1 | a1307 | DOI: https://doi.org/10.4102/sajems.v20i1.1307 | © 2017 Natasha Buitendag, Gail S. Fortuin, Amber de Laan | This work is licensed under CC Attribution 4.0
Submitted: 21 January 2015 | Published: 28 February 2017

About the author(s)

Natasha Buitendag, School of Accountancy, University of Stellenbosch, South Africa
Gail S. Fortuin, School of Accountancy, University of Stellenbosch, South Africa
Amber de Laan, School of Accountancy, University of Stellenbosch, South Africa


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Abstract

Background: Integrated reporting has attracted much attention in the past few years, and South Africa has taken the lead in its development worldwide. An annual survey is published by Ernst & Young regarding the quality of the integrated reports of the top 100 entities listed on the Johannesburg Stock Exchange (JSE).

Aim: The study on which this article is based was aimed at determining whether the assessment of an entity’s characteristics can predetermine the quality of the integrated report generated by that entity. Setting: This article focuses on an analysis of the integrated reporting of the top 100 entities listed on JSE for the financial years ending in 2013, 2014 and 2015.

Methods: Comparison of categorical variables, mixed-model repeated measures ANOVA and generalised estimating equations were applied to identify the best classificators to distinguish between excellent integrated reporting and those reports where progress could still be made.

Results: The results show that the type of industry the entity finds itself in, the size and profitability of the entity, as well as the composition of the members of the board, have an effect on the quality of the integrated report.

Conclusion: Our results indicated that the type of industry, size of an entity, the profitability and composition of the board of directors, all have an effect on the quality of the integrated reporting. Our evidence will assist current and prospective stakeholders in evaluating the expected quality of an entity’s integrated report, through the evaluation of certain firm characteristics.


Keywords

integrated reporting; King III; corporate governance; entity characteristics

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Crossref Citations

1. Determinants of Companies that Disclose High-Quality Integrated Reports
Petra F. A. Dilling, Sinan Caykoylu
Sustainability  vol: 11  issue: 13  first page: 3744  year: 2019  
doi: 10.3390/su11133744