Corporate reporting behavior: Factors influencing the adoption of integrated reporting in India
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DOIhttp://dx.doi.org/10.21511/ppm.22(2).2024.35
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Article InfoVolume 22 2024, Issue #2, pp. 453-462
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Corporations have a responsibility to provide a fair view of their financial state to their stakeholders. To facilitate the reporting process, the IFRS recommends the integrated reporting framework, which firms may may adopt voluntarily. This study examines the motivations of management in voluntarily disclosing capitals-related information in annual reports of companies listed on the Nifty Metal Index and their willingness to adopt the IR framework. It also empirically investigates how a company’s long-term and short-term goals impact integrated reporting adoption. The Integrated Reporting Capitals Index (IRCIN) was constructed to study the reporting behavior of companies within the specified framework. The reporting patterns within the metal industry are analyzed by employing the fixed effects model. Results highlight the interconnectedness of financial and non-financial capital dimensions in corporate reporting practices, albeit with a strong emphasis on financial capital. The average word count describing the financial capital was high, while the intellectual capital was the lowest. Strategic management evaluated via cash flow from investing activities proved statistically significant at the 5% level. Similarly, short-term goals indicated by profit after tax were found to play a crucial role in encouraging corporations within the Nifty Metal Index to adopt the integrated reporting framework. Conversely, book value per share exhibited a negative coefficient, indicating a historical disconnect with the reporting entities. These insights suggest that the adoption of the integrated reporting framework by management is driven by strategic goals, short-term objectives, and overall company performance.
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JEL Classification (Paper profile tab)D22, M41, M48
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References39
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Tables5
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Figures0
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- Table 1. Combined average word count of capitals 2020–2023
- Table 2. Descriptive statistics
- Table 3. Correlation of six capitals and IRCIN
- Table 4. Correlation of dependent and independent variables
- Table 5. Fixed effects model
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Industrial development in Saudi Arabia: disparity in growth and development
Anis Ali
doi: http://dx.doi.org/10.21511/ppm.18(2).2020.03
Problems and Perspectives in Management Volume 18, 2020 Issue #2 pp. 23-35 Views: 3006 Downloads: 1022 TO CITE АНОТАЦІЯIndustrial development in any nation plays a vital role in the strengthening of the economy and employs human resources as per specifications and directly towards the mainstream of the nation. In Saudi Arabia, there was rapid industrialization for four decades. Some manufacturing industries performed well, while some internal and external business environment factors influenced the others’ performance. The study focuses on historical development, as well as recent trends of well-performing and poor-performing industries of Saudi Arabia. Small manufacturing industries in Saudi Arabia are underdeveloped and need more attention to attain sustainable and progressive growth rate in the form of the number of establishments to enjoy the potential. Manufacture of tobacco, computer, electronics and optics, pharmaceuticals and transport equipment are the deprived and underdeveloped industries of the manufacturing sector. There should be some easy credit schemes for the development of deprived or underdeveloped manufacturing industries. To attain sustainable growth and development of the manufacturing sector, a positive attitude of the government towards underdeveloped manufacturing industries, favorable labor laws, and entrepreneurial awareness, technical and financial assistance are necessary. The growth and development of the manufacturing sector of Saudi Arabia will be helpful in the attainment of goals of Vision 2030.
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Why banks should consider ESG risk factors in bank lending?
Sarwar Uddin Ahmed ,
Samiul Parvez Ahmed ,
Ikramul Hasan
doi: http://dx.doi.org/10.21511/bbs.13(3).2018.07
Banks and Bank Systems Volume 13, 2018 Issue #3 pp. 71-80 Views: 2817 Downloads: 1132 TO CITE АНОТАЦІЯWhy banks should be concerned about incorporating environmental, social and governance (ESG) criteria in the lending process? What is the motivation? This study aims to find the motives for considering environmental, social and governance (ESG) criteria in bank lending process. A primary survey has been conducted to know the current status and motivation for incorporating ESG factors in investment decisions. Sample comprised 30 private commercial banks (PCBs) operating in Bangladesh. Data collected were analyzed with graphs, descriptive statistics, and regression analysis. Findings of the study indicate that banks are mostly considering basic environmental, social and governance factors set by regulators qualitatively. They are lagging behind in considering the advanced ESG criteria needed for sustainable and efficient credit risk management. Based on motivation for incorporating ESG factors, it was found that banks pioneering in incorporating ESG factors in lending decisions are compensated through better financial performance. Findings of the study are expected to encourage practitioners and policy-makers to take more pragmatic steps to incorporate ESG risk factors quantitatively in lending decision-making process.
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Integrated reporting and financial performance of South African listed banks
Reon Matemane ,
Rozane Wentzel
doi: http://dx.doi.org/10.21511/bbs.14(2).2019.11
Banks and Bank Systems Volume 14, 2019 Issue #2 pp. 128-139 Views: 2770 Downloads: 540 TO CITE АНОТАЦІЯThe recent development of integrated reporting intends to address the limitations associated with corporate reporting practices. This paper aims to examine whether a statistically significant relationship exists between integrated reporting quality and financial performance. Secondary data was used, namely the integrated reports and annual financial statements of South African banks listed on the Johannesburg Stock Exchange (JSE) for 2010–2014. For the period 2005–2009, only the financial statements were used, since integrated reporting was not yet mandatory. The research design was longitudinal and it combined qualitative and quantitative methods. Descriptive statistics and Feasible Generalized Least Square (FGLS) were used to explore the relationships between financial performance and integrated reporting quality. The results indicate that there is a positive relationship between integrated reporting quality (IRQ) and earnings per share (EPS). However, there is no significant relationship between IRQ and Tobin’s q (Q-Ratio), IRQ and return on equity (ROE), IRQ and return on assets (ROA) as well as IRQ and economic value added (EVA). Moreover, there are no significant differences on the financial performance of the listed banks before and after the introduction of integrated reporting.
