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Integrated reporting: boon or bane? A review of empirical research on its determinants and implications

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  • Linda Kannenberg

    (Martin-Luther-University Halle-Wittenberg)

  • Philipp Schreck

    (Martin-Luther-University Halle-Wittenberg)

Abstract

Integrated Reporting (IR) is a fairly new form of corporate reporting that is believed to hold promises for both financial and sustainability reporting. IR goes beyond a mere change in information disclosures and has the potential to influence internal communication processes, strategic considerations and, as a result, decision-making. The simultaneous portrayal of sustainability concerns alongside financial considerations might lead to socially and ecologically advantageous company decisions. A thorough understanding of those factors that potentially mediate the relationship between integrated reporting on one side, and company performance on the other, allows for conclusions on whether integrated reporting substantially affects the way in which companies deal with sustainability issues. To address this question, this article provides a structured review of empirical studies on the implications of integrated reporting within as well as outside of the organization. We reviewed evidence from 32 studies suggesting that integrated reporting has some positive implications, such as an improvement in data quantity and quality as well as an improved collaboration on sustainability issues within the firm. In contrast, our review provided inconclusive results on whether IR advances sustainability performance. We discuss these findings and offer avenues for further research in the field.

Suggested Citation

  • 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.
    • Handle: RePEc:spr:jbecon:v:89:y:2019:i:5:d:10.1007_s11573-018-0922-8
    DOI: 10.1007/s11573-018-0922-8
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    More about this item

    Keywords

    Integrated reporting; Sustainability reporting; International integrated reporting council; Sustainability performance;
    All these keywords.

    JEL classification:

    • M1 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration
    • M4 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting
    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance

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