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Propagating Transparency and Accountability Through Integrated Reporting: An Empirical Insight From a Developing Country

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  • Faizah Darus
  • Shafawati Farhana Mohd Safihie
  • Haslinda Yusoff

Abstract

Increasing pressure from stakeholders that demands for a holistic corporate report both in terms of financial and non-financial information, has resulted in a move towards a more integrated approach in corporate reporting. The aim of this study is to examine the presence of the elements of integrated reporting and the drivers for the adoption of such reports. The influence of internal and external pressure from the perspective of agency and stakeholder theories forms the focus of this study. Content analyses of the annual reports of the top 100 companies in Malaysia for the year 2014 are examined. The results show positive relationships for the independent variables mission and vision, and risk and opportunities with the presence of the elements of integrated reporting in the annual reports. The positive relationships reveal that companies that align key strategies with the mission and vision statement and take measures to address risk and opportunities of the organization, will be more proactive in implementing integrated reporting. The findings provide empirical evidence on the progress of integrated reporting in a developing country where research to examine the effects of specific determinants on the likelihood of companies in a developing country providing integrated reports is almost non-existent.

Suggested Citation

  • Faizah Darus & Shafawati Farhana Mohd Safihie & Haslinda Yusoff, 2019. "Propagating Transparency and Accountability Through Integrated Reporting: An Empirical Insight From a Developing Country," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 11(5), pages 92-109, August.
    • Handle: RePEc:jfr:ijfr11:v:10:y:2019:i:5:p:92-109
    DOI: 10.5430/ijfr.v10n5p92
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    References listed on IDEAS

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    1. Kostenko, Olena & Kravchenko, Olena & Ovcharova, Natalia & Oleksich, Zhanna & Dmytrenko, Alla, 2021. "Integrated reporting in investment decision-making: bibliometric analysis of scientific landscape," Agricultural and Resource Economics: International Scientific E-Journal, Agricultural and Resource Economics: International Scientific E-Journal, vol. 7(2), June.

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