Skip to main content
SpringerLink
Log in

Integrated reporting: The current state of empirical research, limitations and future research implications

  • Original Paper
  • Published:
Journal of Management Control Aims and scope Submit manuscript

Abstract

In view of the increased demand for non-financial reporting after the financial crisis of 2008/2009, integrated reporting (IR) plays a key role in management control and stakeholder relations management. As a consequence of “integrated thinking” IR combines traditional financial accounting with sustainability and corporate governance related issues to enhance the decision usefulness of modern business reporting. Although there has been steady growth in the awareness of IR research (Eccles et al. J Appl Corp Finance 27:8–17, 2015), the current state of empirical IR research activities is not well described so far. This literature review evaluates 44 empirical studies on IR which were published especially after the adoption of the IR framework by the International Integrated Reporting Council (IIRC) in December 2013. We will briefly introduce the IR research agenda, which provides a clear structure for the analysis of current empirical research activities in this field. For the market, organization and individual/group decision level, we show which factors contribute to IR implementation and IR quality. Furthermore, empirical research focuses on market reactions to IR. We also stress the limitations of the studies and provide useful recommendation for future IR research activities for each level of analysis.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Log in via an institution

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Fig. 1
Fig. 2

Similar content being viewed by others

References

  • Aguilera, R., Rupp, D., Williams, C., & Ganapathi, J. (2007). Putting the S back in CSR: a multi-level theory of social change in organizations. Academy of Management Review, 32, 836–863.

  • Arguelles, M.P.M., Balatbat, M., Green, W. (2015). Is there an early-mover market value effect for signaling adoption of integrated reporting? Working paper: New South Wales.

  • Arnold, M., Bassen, A., Frank, R. (2012). Integrating sustainability reports into financial statements. An experimental study. Working paper: Hamburg.

  • Atkins, J., & Maroun, W. (2015). Integrated reporting in South Africa in 2012. Perspectives from South African institutional investors. Meditari Accountancy Research, 23, 197–221.

    Article  Google Scholar 

  • Barth, M. E., Cahan, S. F., Chen, L., Venter, E. R. (2015). The economic consequences associated with integrated reporting quality: early evidence from a mandatory setting. Working paper: Pretoria.

  • Beck, C., Dumay, J., Frost, G. (2015) In pursuit of a ‘single source of truth’: from threatened legitimacy to integrated reporting. Journal of Business Ethics (online first).

  • Bernardi, C., Stark, A. W. (2015). The transparency of environmental, social and governance disclosures, integrated reporting, and the accuracy of analyst forecasts. Working paper: Rome.

  • Berthelot, S., Cormier, D., & Magnan, M. (2003). Environmental disclosure research: review and synthesis. Journal of Accounting Literature, 22, 1–44.

    Google Scholar 

  • Brown, J., & Dillard, J. (2014). Integrated reporting: on the need for broadening out and opening up. Accounting, Auditing & Accountability Journal, 27, 1120–1156.

    Article  Google Scholar 

  • Bommel, K. V. (2014). Towards a legitimate compromise? An exploration of integrated reporting in the Netherlands. Accounting, Auditing & Accountability Journal, 27, 1157–1189.

    Article  Google Scholar 

  • Chen, J. C. C., & Roberts, R. W. (2010). Toward a more coherent understanding of the organization-society relationship: a theoretical consideration for social and environmental accounting research. Journal of Business Ethics, 97, 651–665.

    Article  Google Scholar 

  • Churet, C., & Eccles, R. G. (2014). Integrated reporting, quality of management, and financial performance. Journal of Applied Corporate Finance, 26, 56–64.

    Google Scholar 

  • Clayton, A. F., Rogerson, J. M., & Rampedi, I. (2015). Integrated reporting vs. sustainability reporting for corporate responsibility in South Africa. Bulletin of Geography, 29, 7–17.

    Google Scholar 

  • Cohen, J. R., & Simnett, R. (2015). CSR and assurance services. A research agenda. Auditing, 34, 59–74.

  • Cyert, R. M., & March, J. G. (1963). A behavioral theory of the firm. Englewoods Cliffs: Prentice-Hall.

    Google Scholar 

  • Deegan, C. (2002). The legitimising effect of social and environmental disclosures - a theoretical foundation. Accounting, Auditing & Accountability Journal, 15, 282–311.

    Article  Google Scholar 

  • Deegan, C. (2009). Financial accounting theory. McGraw-Hill Australia: North Ryde.

    Google Scholar 

  • Dienes, D., Velte, P. (2016). The impact of supervisory board composition on CSR reporting. Evidence from the German two-tier system. Sustainability, 8, 63.

  • Dilla, W.N., Janvrin, D., Perkins, J.D., Raschke, R.L. (2015). Integrated reporting: the influence of non-financial assurance report level and format on investor judgments. Working paper: Iowa.

  • DiMaggio, P. J., & Powell, W. W. (1983). The iron cage revisited: institutional isomorphism and collective rationality in organizational fields. American Sociological Review, 48, 147–160.

    Article  Google Scholar 

  • Dowling, J., & Pfeffer, J. (1975). Organizational legitimacy: social values and organizational behavior. The Pacific Sociological Review, 18, 122–136.

    Article  Google Scholar 

  • Eccles, R. G., & Krzus, M. P. (2015). The integrated reporting movement - meaning, momentum motives, and materiality. Hoboken: Wiley.

    Google Scholar 

  • Eccles, R. G., Krzus, M. P., & Ribot, S. (2015). Meaning and momentum in the integrated reporting movement. Journal of Applied Corporate Finance, 27, 8–17.

    Article  Google Scholar 

  • Eccles, R. G., & Serafeim, G. (2015). Corporate and integrated reporting. A Functional Perspective. Achieving sustainable effectiveness. In S. A. Mohrmann, J. O’Toole, & E. Lawler (Eds.), Corporate stewardship (pp. 156–171). Sheffield: Greenleaf Publishing.

    Google Scholar 

  • Eccles, R.G., Spiesshofer, B. (2015). Integrated reporting for a re-imagined capitalism. Working paper: Harvard.

  • Fernando, S., & Lawrence, S. (2014). A theoretical framework for CSR practices: integrating legitimacy theory, stakeholder theory and institutional theory. Journal of Theoretical Accounting Research, 10, 149–178.

    Google Scholar 

  • Fifka, M. S. (2013). Corporate responsibility reporting and its determinants in comparative perspective - a review of the empirical literature and a meta-analysis. Business Strategy and the Environment, 22, 1–35.

    Article  Google Scholar 

  • Flower, J. (2015). The International Integrated Reporting Council: a story of failure. Critical Perspectives on Accounting, 27, 1–17.

    Article  Google Scholar 

  • Frias-Aceituno, J. V., Rodriguez-Ariza, L., & Garica-Sanchez, I. M. (2013a). Is integrated reporting determined by a country’s legal system? An exploratory study. Journal of Cleaner Production, 44, 45–55.

    Article  Google Scholar 

  • Frias-Aceituno, J. V., Rodriguez-Ariza, L., & Garcia-Sanchez, I. M. (2013b). The role of the board in the dissemination of integrated corporate social reporting. Corporate Social Responsibility and Environmental Management, 20, 219–233.

    Article  Google Scholar 

  • Frias-Aceituno, J. V., Rodriguez-Ariza, L., & Garcia-Sanchez, I. M. (2014). Explanatory factors of integrated sustainability and financial reporting. Business Strategy and the Environment, 23, 56–72.

    Article  Google Scholar 

  • Garcia-Sánchez, I. M., Rodriguez-Ariza, L., & Frias-Aceituno, J. V. (2013). The cultural system and integrated reporting. International Business Review, 22, 828–838.

    Article  Google Scholar 

  • Grant, R. (1991). The resource-based-theory of competitive advantage: implications for strategy formulation. California Management Review, 33, 114–135.

    Article  Google Scholar 

  • Gray, R., Kouhy, R., & Lavers, S. (1995). Corporate social and environmental reporting—a review of the literature and a longitudinal study of UK disclosure. Accounting, Auditing & Accountability Journal, 8, 47–77.

    Article  Google Scholar 

  • Haller, A., & Staden, C. V. (2014). The value added statement—an appropriate instrument for integrated reporting. Accounting, Auditing & Accountability Journal, 27, 1190–1216.

    Article  Google Scholar 

  • Havlova, K. (2015). What integrated reporting changed: the case study of early adopters. Procedia Economics and Finance, 34, 231–237.

    Article  Google Scholar 

  • Higgins, C., Stubbs, W., & Love, T. (2014). Walking the talk(s): organisational narratives of integrated reporting. Accounting, Auditing & Accountability Journal, 27, 1090–1119.

    Article  Google Scholar 

  • Huang, X. B., & Watson, L. (2015). Corporate social responsibility research in accounting. Journal of Accounting Literature, 34, 1–16.

  • IIRC. (2013). The International IR Framework, International Integrated Reporting Council. http://www.theiirc.org/wp-content/uploads/2013/12/13-12-08-THE-INTERNATIONAL-IR-FRAMEWORK-2-1.pdf. Accessed 03 February 2016.

  • IIRC. (2014). Assurance on IR. An introduction to the discussion. http://integratedreporting.org/wp-content/uploads/2014/07/Assurance-on-IR-an-introduction-to-the-discussion.pdf. Accessed 03 February 2016.

  • James, M. L. (2014). The benefits of sustainability and integrated reporting: an investigation of accounting majors’ perceptions. Journal of Legal, Ethical and Regulatory Issues, 17, 93–114.

    Google Scholar 

  • Jensen, J. C., & Berg, N. (2012). Determinants of traditional sustainability reporting versus integrated reporting. An institutionalist approach. Business Strategy and the Environment, 21, 299–316.

    Article  Google Scholar 

  • Kaya, C. T., Ergüden, A. E., & Sayar, A. R. Z. (2016). Essence of integrated reporting: a holistic framework for sustainability and value creation. International Journal of Academic Research in Accounting, Finance and Management Sciences, 6, 29–34.

    Article  Google Scholar 

  • Kolk, A., & van Tulder, R. (2010). International business, corporate social responsibility and sustainable development. International Business Review, 19, 119–125.

    Article  Google Scholar 

  • KPMG. (2015). The KPMG Survey of Corporate Responsibility Reporting 2015. http://www.kpmg.com/CN/en/IssuesAndInsights/ArticlesPublications/Documents/kpmg-survey-of-corporate-responsibility-reporting-2015-O-201511.pdf. Accessed 18 February 2016.

  • Lai, A., Melloni, G., Stacchezzini, R. (2014). Corporate sustainable development. is integrated reporting a legitimation strategy? Business Strategy and the Environment, 23 (online first).

  • Lee, K.W., Yeo, G.H.H. (2015). The association between integrated reporting and firm evaluation. Review of Quantitative Finance and Accounting, 45 (online first).

  • Lee, T. M., & Hutchison, P. D. (2005). The decision to disclose environmental information: a research review and agenda. Advances in Accounting, 21, 83–111.

    Article  Google Scholar 

  • Lipunga, A. M. (2015). Integrated reporting in developing countries. Evidence from Malawi. Journal of Management Research, 7, 130–156.

    Article  Google Scholar 

  • Lodhia, S. (2015). Exploring the transition to integrated reporting through a practice lens: an Australian customer owned bank perspective. Journal of Business Ethics, 129, 585–598.

    Article  Google Scholar 

  • Lueg, K., Lueg, R., Andersen, K., & Dancianu, V. (2016). Integrated reporting with CSR practices. A pragmatic constructivist case study in a Danish cultural setting. Corporate Communications: An International Journal, 21, 20–35.

    Article  Google Scholar 

  • Malik, M. (2015). Value-enhancing capabilities of CSR: A brief review of contemporary literature. Journal of Business Ethics, 127, 419–438.

  • Maniora, J. (2015). Is integrated reporting really the superior mechanism for the integration of ethics into the core business model? An empirical analysis. Journal of Business Ethics (online first).

  • March, J. G., & Simon, H. A. (1958). Organizations. New York: Wiley.

    Google Scholar 

  • Martinez, C.R. (2015). Integrated reporting and information asymmetry. Working paper: without place.

  • Marx, B., & Mohammadali-Haji, A. (2014). Emerging trends in reporting: an analysis of integrated reporting practices by South African top 40 listed companies. Journal of Economic and Financial Sciences, 7, 231–250.

    Google Scholar 

  • Mathews, M. R. (1997). Twenty-five years of social and environmental accounting research—Is there a silver jubilee to celebrate? Accounting, Auditing & Accountability Journal, 10, 481–531.

    Article  Google Scholar 

  • Melloni, G. (2015). Intellectual capital disclosure in integrated reporting: an impression management analysis. Journal of Intellectual Capital, 16, 661–680.

    Article  Google Scholar 

  • Mervelskemper, L., Streit, D. (2015). Investors’ perception of ESG performance: Is integrated reporting keeping its promise? Working paper: Bochum.

  • Mio, C., Fasan, M. (2014). The determinants of materiality disclosure in integrated corporate reporting. Working paper: Venezia.

  • Morros, J. (2016). The integrated reporting: a presentation of the current state of art and aspects of integrated reporting that need further development. Intangible Capital, 12, 336–356.

    Article  Google Scholar 

  • Müller, S., Stawinoga, M., & Velte, P. (2015). Stakeholder expectations on CSR management and current regulatory developments in Europe and Germany. Corporate Ownership and Control, 12, 505–512.

    Article  Google Scholar 

  • Müller, S., & Stawinoga, M. (2015). Entwicklungslinien des Integrated Reportings. In C. C. Freidank, S. Müller, & P. Velte (Eds.), Handbuch Integrated Reporting—Herausforderung für Steuerung, Überwachung und Berichterstattung (pp. 3–28). Berlin: Erich Schmidt Verlag.

    Google Scholar 

  • O’Donovan, G. (1999). Managing legitimacy through increased corporate environmental reporting: an exploratory study. Interdisciplinary Environmental Review, 1, 63–99.

    Article  Google Scholar 

  • Oliver, C. (1997). Sustainable competitive advantage: combining institutional and resource-based views. Strategic Management Journal, 18, 697–713.

    Article  Google Scholar 

  • Oliver, J., Vesty, G., & Brooks, A. (2016). Conceptualising integrated thinking in practice. Managerial Auditing Journal, 31, 228–248.

    Article  Google Scholar 

  • Oshika, T., Saka, C. (2015). Sustainability KPIs for integrated reporting. Working Paper: Tokyo.

  • Plessis, J. J. D., & Rühmkorf, A. (2015). New trends regarding sustainability and integrated reporting for companies: what protections do investors have? The Company Lawyer, 36, 49–62.

    Google Scholar 

  • Pozzoli, M., & Gesuele, B. (2016). From theory to practice: first adoption of integrated reporting by the Italian public utilities. In D. Mancini, R. P. Dameri, & E. Bonollo (Eds.), Strengthening Information and Control Systems (pp. 121–132). Cham, Heidelberg, New York, Dordrecht, London: Springer.

  • Rambaud, A., & Richard, J. (2015). The “triple depreciation line” instead of the “triple bottom line”: towards a genuine integrated reporting. Critical Perspectives on Accounting, 33, 92–116.

    Article  Google Scholar 

  • Rensburg, R., & Botha, E. (2014). Is integrated reporting the silver bullet of financial communication? A stakeholder perspective from South Africa. Public Relations Review, 40, 144–152.

    Article  Google Scholar 

  • Reuter, M., & Messner, M. (2015). Lobbying on the integrated reporting framework. An analysis of comment letters to the 2011 discussion paper of the IIRC. Accounting, Auditing & Accountability Journal, 28, 365–402.

    Article  Google Scholar 

  • Roberts, P. (1992). Business and the environment: an initial review of the recent literature. Business Strategy and the Environment, 1, 41–50.

    Article  Google Scholar 

  • Robertson, F. A., & Samy, M. (2015). Factors affecting the diffusion of integrated reporting. A UK FTSE 100 perspective. Sustainability Accounting, Management and Policy Journal, 6, 190–223.

    Article  Google Scholar 

  • Rowbottom, N., & Locke, J. (2016). The emergence of IR. Accounting and Business Research, 46, 83–115.

    Article  Google Scholar 

  • Sanfey, A. G. (2007). Decision neuroscience. New directions in studies of judgment and decision-making. Current Directions in Psychological Science, 16, 151–155.

    Article  Google Scholar 

  • Schaltegger, S., & Zvezdov, D. (2015). Gatekeepers of sustainability information: exploring the roles of accountants. Journal of Accounting and Organizational Change, 11, 333–361.

    Article  Google Scholar 

  • Serafeim, G. (2015). Integrated reporting and investor clientele. Journal of Applied Corporate Finance, 27, 34–51.

    Article  Google Scholar 

  • Setia, N., Abhayawansa, S., Joshi, M., & Huynh, A. V. (2015). Integrated reporting in South Africa: some initial evidence. Sustainability Accounting, Management and Policy Journal, 6, 397–424.

    Article  Google Scholar 

  • Seuring, S., & Mueller, M. (2008). Core issues in sustainable supply chain management—a Delphi study. Business Strategy and the Environment, 17, 455–466.

    Article  Google Scholar 

  • Simnett, R. (2014). Assurance of environmental, social and sustainability information. In D. Hay, R. Knechel, & M. Willekens (Eds.), The Routledge companion to auditing (pp. 325–337). London, New York: Routledge.

    Google Scholar 

  • Simnett, R., & Huggins, A. L. (2015). Integrated reporting and assurance: where can research add value? Sustainability Accounting, Management and Policy Journal, 6, 29–53.

    Article  Google Scholar 

  • Shocker, A., & Sethi, P. (1973). An approach to incorporating societal preferences in developing corporate action strategies. California Management Review, 15, 97–105.

    Article  Google Scholar 

  • Soh, D. S. B., Leung, P., & Leong, S. (2015). The development of integrated reporting and the role of the accounting and auditing profession. In M. M. Rahim & S. O. Idowu (Eds.), Social audit regulation—development, challenges and opportunities (pp. 33–57). Cham: Springer International Publishing.

    Google Scholar 

  • Stawinoga, M., & Velte, P. (2015). CSR management and reporting between voluntary bonding and legal regulation. Problems and Perspectives in Management, 13, 36–50.

    Google Scholar 

  • Stent, W., & Dowler, T. (2015). Early assessments of the gap between integrated reporting and current corporate reporting. Meditari Accountancy Research, 23, 92–117.

    Article  Google Scholar 

  • Steyn, M. (2014). Senior executives’ perspectives of integrated reporting regulatory regimes as a mechanism for advancing sustainability in South African listed companies. Southern African Business Review, 18, 142–174.

    Google Scholar 

  • Strong, P. T. (2015). Is integrated reporting a matter of public concern? Evidence from Australia. Journal of Corporate Citizenship, 60, 81–100.

    Article  Google Scholar 

  • Stubbs, W., & Higgins, C. (2014). Integrated reporting and internal mechanisms of change. Accounting, Auditing & Accountability Journal, 27, 1068–1089.

    Article  Google Scholar 

  • Stubbs, W., Higgins, C., Milne, M., Hems, L. (2015). Financial capital providers’ perceptions of integrated reporting. Working paper: Clayton.

  • Tweedie, D., & Martinov-Bennie, N. (2015). Entitlements and time: integrated reporting’s double-edged agenda. Social and Environmental Accountability Journal, 35, 49–61.

    Article  Google Scholar 

  • Turturea, M. (2015). Integrated reporting into practice. A ten year experience. SEA Practical Application of Science, 3, 565–571.

    Google Scholar 

  • Zhou, S., Simnett, R., Green, W. (2015). Does integrated reporting matter to the capital market? Working paper: Sydney.

Download references

Author information

Authors and Affiliations

  1. Chair of Accounting & Auditing, Leuphana University of Lueneburg, Scharnhorststr. 1, 21335, Lueneburg, Germany

    Patrick Velte

  2. Chair for Business Administration, especially Accounting & Auditing, Helmut-Schmidt-University/University of the Federal Armed Forces Hamburg, Holstenhofweg 85, 22043, Hamburg, Germany

    Martin Stawinoga

Authors
  1. Patrick Velte
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Martin Stawinoga
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Patrick Velte.

Additional information

The authors thank the anonymous reviewers and the managing editor for their helpful comments.

Rights and permissions

Reprints and permissions

About this article

Check for updates. Verify currency and authenticity via CrossMark

Cite this article

Velte, P., Stawinoga, M. Integrated reporting: The current state of empirical research, limitations and future research implications. J Manag Control 28, 275–320 (2017). https://doi.org/10.1007/s00187-016-0235-4

Download citation

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s00187-016-0235-4

Keywords

JEL Classification

Search

Navigation