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Performance Sustainability and Integrated Reporting: Empirical Evidence from Mandatory and Voluntary Adoption Contexts

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  • Salvatore Loprevite

    (Department of Sciences of the Society and the Mediterranean Area Formation, University “Dante Alighieri” of Reggio Calabria, 89125 Reggio Calabria, Italy)

  • Bruno Ricca

    (Department of Economics, University of Messina, 98122 Messina, Italy)

  • Daniela Rupo

    (Department of Economics, University of Messina, 98122 Messina, Italy)

Abstract

This paper looks at the topic of regulation of integrated reporting for listed companies, with the aim of contributing to the debate on the usefulness of introducing a mandatory regime, both from the perspective of integrated performance sustainability of companies and from that of relevance of information for providers of financial capital. The study is based on empirical research carried out on a sample composed of companies operating in territories where the adoption of integrated reporting is voluntary (Europe) and those operating in a country where adoption is mandatory (South Africa). The research shows that (a) in voluntary regimes, levels of integrated performance achieved by companies are higher; (b) mandatory regulation produces positive effects on integrated performance levels in the medium term; (c) integrated performance indicators are value-relevant, though having different levels of relevance under the two regimes examined.

Suggested Citation

  • Salvatore Loprevite & Bruno Ricca & Daniela Rupo, 2018. "Performance Sustainability and Integrated Reporting: Empirical Evidence from Mandatory and Voluntary Adoption Contexts," Sustainability, MDPI, vol. 10(5), pages 1-15, April.
    • Handle: RePEc:gam:jsusta:v:10:y:2018:i:5:p:1351-:d:143430
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    Cited by:

    1. María del Mar Miras-Rodríguez & Domingo Martínez-Martínez & Bernabé Escobar-Pérez, 2018. "Which Corporate Governance Mechanisms Drive CSR Disclosure Practices in Emerging Countries?," Sustainability, MDPI, vol. 11(1), pages 1-20, December.
    2. Simona-Maria Tanasă (Brînzaru), 2020. "Integrated Reporting - A New Management Tool in Analyzing the Performance of a Company," Book chapters-LUMEN Proceedings, in: Carmen NĂSTASE (ed.), 16th Economic International Conference NCOE 4.0 2020, edition 1, volume 13, chapter 6, pages 57-69, Editura Lumen.
    3. Hamzeh Al Amosh & Noorhayati Mansor, 2021. "Disclosure of integrated reporting elements by industrial companies: evidence from Jordan," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 25(1), pages 121-145, March.
    4. Renato Camodeca & Alex Almici & Umberto Sagliaschi, 2018. "Sustainability Disclosure in Integrated Reporting: Does It Matter to Investors? A Cheap Talk Approach," Sustainability, MDPI, vol. 10(12), pages 1-34, November.
    5. Elena Ferrer & Francisco J. López‐Arceiz & Cristina del Rio, 2020. "Sustainability disclosure and financial analysts' accuracy: The European case," Business Strategy and the Environment, Wiley Blackwell, vol. 29(8), pages 2939-2952, December.
    6. Salvatore Loprevite & Domenico Raucci & Daniela Rupo, 2020. "KPIs Reporting and Financial Performance in the Transition to Mandatory Disclosure: The Case of Italy," Sustainability, MDPI, vol. 12(12), pages 1-24, June.
    7. Judit Creixans-Tenas & Dolores Gallardo-Vázquez & Núria Arimany-Serrat, 2020. "Social Responsibility, Communication and Financial Data of Hospitals: A Structural Modelling Approach in a Sustainability Scope," Sustainability, MDPI, vol. 12(12), pages 1-20, June.
    8. Patrick Velte, 2022. "Archival research on integrated reporting: a systematic review of main drivers and the impact of integrated reporting on firm value," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 26(3), pages 997-1061, September.
    9. Daniela Rupo & Nicola Rappazzo & Salvatore Loprevite & Giovanna Centorrino, 2024. "Does non-financial information matter? Mapping and clustering literature on the value relevance of comprehensive disclosure," MANAGEMENT CONTROL, FrancoAngeli Editore, vol. 2024(2), pages 89-114.
    10. Jae Kyu Myung & Hyoung-Tae An & Su-Yol Lee, 2019. "Corporate Competitiveness Index of Climate Change: A Balanced Scorecard Approach," Sustainability, MDPI, vol. 11(5), pages 1-16, March.
    11. Estibaliz Goicoechea & Fernando Gómez-Bezares & José Vicente Ugarte, 2019. "Integrated Reporting Assurance: Perceptions of Auditors and Users in Spain," Sustainability, MDPI, vol. 11(3), pages 1-19, January.
    12. Thilini Cooray & Samanthi Senaratne & A. D. Nuwan Gunarathne & Roshan Herath & Dileepa Samudrage, 2020. "Does Integrated Reporting Enhance the Value Relevance of Information? Evidence from Sri Lanka," Sustainability, MDPI, vol. 12(19), pages 1-25, October.

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