IDEAS home Printed from https://ideas.repec.org/p/ebg/heccah/1262.html
   My bibliography  Save this paper

The Expansion of Non-Financial Reporting: An Exploratory Study

Author

Listed:
  • Stolowy, Hervé
  • Paugam, Luc

Abstract

The objective of this study is to investigate how non-financial reporting (NFR) is defined and has expanded in recent years. First, we explore the heterogeneity in definitions and current NFR practices. We find a lack of convergence between regulators and standard-setters, as well as leading sustainable firms. Second, we examine the changes in the extent and type of NFR reported by firms over the period 2006-2016. Based on a sample of firms in South Africa, a leading country in NFR, we document a significant increase in the amount of NFR, particularly between 2006 and 2011. This change appears to be driven by new environmental, human capital, performance and strategic disclosures. The relative importance of financial information in corporate reporting decreased substantially over the same period. Third, we compare reporting practices for corporate social responsibility (CSR)/sustainability information between constituents of the S&P 500 index and the EuroStoxx 600 index. We find that overall, the percentage of firms issuing CSR/sustainability reports increased dramatically between 2002 and 2015 for both stock indices. Constituents of the U.S. stock index and growth firms are less likely to report CSR/sustainability information, whereas firms in the European stock index in environmentally sensitive industries, have high capital intensity and good CSR performance, are larger with better financial performance, are more likely to report CSR/sustainability information.

Suggested Citation

  • Stolowy, Hervé & Paugam, Luc, 2018. "The Expansion of Non-Financial Reporting: An Exploratory Study," HEC Research Papers Series 1262, HEC Paris.
    • Handle: RePEc:ebg:heccah:1262
    as

    Download full text from publisher

    File URL: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3158184
    File Function: Full text
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Huang, Xiaobei “Beryl†& Watson, Luke, 2015. "Corporate social responsibility research in accounting," Journal of Accounting Literature, Elsevier, vol. 34(C), pages 1-16.
    2. Michael Erkens & Luc Paugam & Hervé Stolowy, 2015. "Non-financial information: State of the art and research perspectives based on a bibliometric study," ACCRA, Association francophone de comptabilité, vol. 21(3), pages 15-92.
    3. Rachel N. Birkey & Giovanna Michelon & Dennis M. Patten & Jomo Sankara, 2016. "Does assurance on CSR reporting enhance environmental reputation? An examination in the U.S. context," Accounting Forum, Taylor & Francis Journals, vol. 40(3), pages 143-152, September.
    4. Shan Zhou & Roger Simnett & Wendy Green, 2017. "Does Integrated Reporting Matter to the Capital Market?," Abacus, Accounting Foundation, University of Sydney, vol. 53(1), pages 94-132, March.
    5. Cho, Charles H. & Patten, Dennis M., 2007. "The role of environmental disclosures as tools of legitimacy: A research note," Accounting, Organizations and Society, Elsevier, vol. 32(7-8), pages 639-647.
    6. Barth, Mary E. & Cahan, Steven F. & Chen, Li & Venter, Elmar R., 2017. "The Economic Consequences Associated with Integrated Report Quality: Capital Market and Real Effects," Research Papers 3546, Stanford University, Graduate School of Business.
    7. Maroun, Warren, 2017. "Assuring the integrated report: Insights and recommendations from auditors and preparers," The British Accounting Review, Elsevier, vol. 49(3), pages 329-346.
    8. Charles Cho, 2009. "Legitimation Strategies Used in Response to Environmental Disaster: A French Case Study of Total SA's Erika and AZF Incidents," European Accounting Review, Taylor & Francis Journals, vol. 18(1), pages 33-62.
    9. Matias Laine, 2009. "Ensuring legitimacy through rhetorical changes?," Accounting, Auditing & Accountability Journal, Emerald Group Publishing Limited, vol. 22(7), pages 1029-1054, September.
    10. Michael Erkens & Luc Paugam & Hervé Stolowy, 2015. "Non-financial information: State of the art and research perspectives based on a bibliometric study," ACCRA, Association francophone de comptabilité, vol. 21(3), pages 15-92.
    11. repec:eme:aaaj00:09513570910987367 is not listed on IDEAS
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. repec:ehu:cuader:55446 is not listed on IDEAS
    2. Warren Maroun, 2020. "A Conceptual Model for Understanding Corporate Social Responsibility Assurance Practice," Journal of Business Ethics, Springer, vol. 161(1), pages 187-209, January.
    3. Igor Álvarez-Etxeberria & Miguel Marco-Fondevila & Constancio Zamora-Ramírez, 2023. "Non-Financial Disclosure: Isomorphism Effect in the Face of New Regulation," Sustainability, MDPI, vol. 15(11), pages 1-22, May.
    4. 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.
    5. Ionel Bostan & Ionela-Corina Chersan & Magdalena Danileț & Mihaela Ifrim & Viorica Chirilă, 2020. "Investigations Regarding the Linguistic Register Used by Managers to Convey to Stakeholders a Positive View of Their Company, in the Context of the Business Sustainability Desideratum," Sustainability, MDPI, vol. 12(17), pages 1-19, August.
    6. Hans B. Christensen & Luzi Hail & Christian Leuz, 2021. "Mandatory CSR and sustainability reporting: economic analysis and literature review," Review of Accounting Studies, Springer, vol. 26(3), pages 1176-1248, September.
    7. Nicole Darnall & Hyunjung Ji & Kazuyuki Iwata & Toshi H. Arimura, 2022. "Do ESG reporting guidelines and verifications enhance firms' information disclosure?," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 29(5), pages 1214-1230, September.
    8. Cerbone, Dannielle & Maroun, Warren, 2020. "Materiality in an integrated reporting setting: Insights using an institutional logics framework," The British Accounting Review, Elsevier, vol. 52(3).
    9. 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.
    10. Jannik Gerwanski, 2020. "Does it pay off? Integrated reporting and cost of debt: European evidence," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 27(5), pages 2299-2319, September.
    11. Pei‐Chi Kelly Hsiao & Charl de Villiers & Claire Horner & Hein Oosthuizen, 2022. "A review and synthesis of contemporary sustainability accounting research and the development of a research agenda," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 62(4), pages 4453-4483, December.
    12. Warren Maroun & Andre Prinsloo, 2020. "Drivers of combined assurance in a sustainable development context: Evidence from integrated reports," Business Strategy and the Environment, Wiley Blackwell, vol. 29(8), pages 3702-3719, December.
    13. Linda Kannenberg & Philipp Schreck, 2019. "Integrated reporting: boon or bane? A review of empirical research on its determinants and implications," Journal of Business Economics, Springer, vol. 89(5), pages 515-567, July.
    14. Genevé Richard & Elza Odendaal, 2021. "Credibility-enhancing mechanisms, other than external assurance, in integrated reporting," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 25(1), pages 61-93, March.
    15. Amir Hossain & Sudipta Bose & Abul Shamsuddin, 2023. "Diffusion of integrated reporting, insights and potential avenues for future research," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 63(2), pages 2503-2555, June.
    16. Green, Wendy J. & Cheng, Mandy M., 2019. "Materiality judgments in an integrated reporting setting: The effect of strategic relevance and strategy map," Accounting, Organizations and Society, Elsevier, vol. 73(C), pages 1-14.
    17. Nuradhi Kalpani Jayasiri & Sriyalatha Kumarasinghe & Rakesh Pandey, 2023. "12 years of integrated reporting: A review of research," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 63(2), pages 2187-2243, June.
    18. Thomas Gutmayer & Dannielle Cerbone & Warren Maroun, 2022. "An Evaluation of Business Model Disclosures in Integrated Reports," Australian Accounting Review, CPA Australia, vol. 32(2), pages 220-237, June.
    19. Willem F. J. Buijink & Thorsten Sellhorn & Alfred Wagenhofer, 2019. "Special Issue: Regulation of Corporate Disclosure," Schmalenbach Business Review, Springer;Schmalenbach-Gesellschaft, vol. 71(2), pages 131-136, May.
    20. She, Chaoyuan & Michelon, Giovanna, 2019. "Managing stakeholder perceptions: Organized hypocrisy in CSR disclosures on Facebook," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 61(C), pages 54-76.
    21. Mohammed S. Y. Omran & Mohammad A. A. Zaid & Aladdin Dwekat, 2021. "The relationship between integrated reporting and corporate environmental performance: A green trial," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 28(1), pages 427-445, January.

    More about this item

    Keywords

    Non-Financial Reporting (NFR); Non-Financial Information (NFI); Integrated Reporting; Corporate Social Responsibility (CSR) Reporting; Sustainability Reporting; Environmental Reporting; Social Reporting;
    All these keywords.

    JEL classification:

    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ebg:heccah:1262. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Antoine Haldemann (email available below). General contact details of provider: https://edirc.repec.org/data/hecpafr.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.