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Does integrated reporting information influence internal decision making? An experimental study of investment behavior

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  • Martin Esch
  • Benedikt Schnellbächer
  • Andreas Wald

Abstract

Sustainable value creation has moved to the center of attention of many companies, leading to a shift in external corporate reporting. Sustainability information is provided within sustainability reports and CSR reports as well as integrated reports. Research has considered the motivations and different formats of integrated reports and how these reports provide a better information basis for investors. However, integrated reporting information may also affect internal decision making by providing decision makers with a more comprehensive picture of the impact of the firm's strategy. Here, we present the results of a scenario‐based experiment testing how financial, unlinked financial and nonfinancial, and integrated information affect the outcomes of investment decisions. We find that an integrated information basis leads to decisions with higher sustainable value creation. We thus show that information prepared for external reporting can also be used for internal purposes to help companies establish sustainable decision behavior.

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  • Martin Esch & Benedikt Schnellbächer & Andreas Wald, 2019. "Does integrated reporting information influence internal decision making? An experimental study of investment behavior," Business Strategy and the Environment, Wiley Blackwell, vol. 28(4), pages 599-610, May.
    • Handle: RePEc:bla:bstrat:v:28:y:2019:i:4:p:599-610
    DOI: 10.1002/bse.2267
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    7. Amina Buallay, 2024. "Sustainability Reporting in IT Sector vs. Other Sectors: The Impacts on Multidimensional Performance," International Journal of E-Business Research (IJEBR), IGI Global, vol. 20(1), pages 1-23, January.
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    9. Abdullah Jihad Rabaya & Norman Mohd Saleh, 2022. "The moderating effect of IR framework adoption on the relationship between environmental, social, and governance (ESG) disclosure and a firm's competitive advantage," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(2), pages 2037-2055, February.
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    19. Andreas Errikos Delegkos & Michalis Skordoulis & Petros Kalantonis & Aggelia Xanthopoulou, 2022. "Integrated Reporting and Value Relevance in the Energy Sector: The Case of European Listed Firms," Energies, MDPI, vol. 15(22), pages 1-13, November.
    20. Stefano Marasca & Lucia Montanini & Alessia D'Andrea & Eva Cerioni, 2020. "The how and why of integrated reporting in a public health care organization: The stakeholders' perspective," Business Strategy and the Environment, Wiley Blackwell, vol. 29(4), pages 1714-1722, May.
    21. Filippo Vitolla & Nicola Raimo & Michele Rubino & Antonello Garzoni, 2019. "The impact of national culture on integrated reporting quality. A stakeholder theory approach," Business Strategy and the Environment, Wiley Blackwell, vol. 28(8), pages 1558-1571, December.
    22. Filippo Vitolla & Nicola Raimo & Michele Rubino & Antonello Garzoni, 2019. "How pressure from stakeholders affects integrated reporting quality," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 26(6), pages 1591-1606, November.

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