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Effects of Integrated Reporting on Corporate Disclosure Practices regarding the Capitals and Performance

Author

Listed:
  • Alina Almã?an

    (West University of Timi?oara, Romania)

  • Cristina Circa

    (West University of Timi?oara, Romania)

  • Mãdãlina Dumitru

    (Bucharest University of Economic Studies, Bucharest, Romania)

  • Raluca Gina Gu?e

    (Bucharest University of Economic Studies, Bucharest, Romania)

  • Drago? Marian Mangiuc

    (Bucharest University of Economic Studies, Bucharest, Romania)

Abstract

Integrated reporting promotes changing the internal processes of companies to generate improved performance. One way toward this goal is to use integrated thinking as a tool to achieve a ‘better understanding of the factors that materially affect an organization’s ability to create value over time’, that is the six capitals, as suggested by the International Integrated Reporting Council. Our goal is to identify ‘effects of learning’ in the field of integrated reporting on the performance and reporting practices of companies. More specifically, we aim to identify how and to what extent integrated thinking translated into their reporting practices and performance, while companies implemented the International Integrated Reporting Framework. Therefore, we analyse and compare the reporting practices and performance of European companies included in the International Integrated Reporting Council’s Pilot Program for two moments in time: 2013 and 2016. We use a set of nineteen indicators, considered as the most important for the presentation of the six capitals. Thus, we provide insights about how integrated reports disclose information concerning the capitals. Results show improvements in performance and the diversification of indicators disclosed in the reports. However, changes are not exclusively attributable to integrated reporting; reporting experience is also a contributing factor. The study contributes to the literature on the impact of integrated reporting in practice.

Suggested Citation

  • Alina Almã?an & Cristina Circa & Mãdãlina Dumitru & Raluca Gina Gu?e & Drago? Marian Mangiuc, 2019. "Effects of Integrated Reporting on Corporate Disclosure Practices regarding the Capitals and Performance," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 21(52), pages 572-572, August.
    • Handle: RePEc:aes:amfeco:v:21:y:2019:i:52:p:572
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    More about this item

    Keywords

    Integrated reporting; integrated thinking; capitals; performance; key performance indicators.;
    All these keywords.

    JEL classification:

    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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