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The relationship between compliance level and value creation: evidence from integrated reports in Turkey

B. Esra Aslanertik (Faculty of Business Administration, Dokuz Eylul University, Izmir, Turkey)
Bengü Yardımcı (Vocational School, Yasar University, Izmir, Turkey)

Journal of Financial Reporting and Accounting

ISSN: 1985-2517

Article publication date: 17 May 2022




This study aims to investigate the level of reporting compliance in terms of content elements, measure to what extent each content element of the integrated reporting (IR) framework is linked to value creation and demonstrate the relationship between the level of compliance and value creation linkages.


The sample for this study consists of 12 companies, 11 of which are public and 1 is non-public. The data is obtained from the Integrated Reporting Turkey Network founded in 2015 in Turkey. This study applies a holistic approach integrating two different content analysis methods. First, a multi-weighted scoring system is constructed by using the IR content elements and the previously developed indexes in the literature. Second, in-depth, sentence-by-sentence content analysis is used to determine the relation between the content elements and value creation.


The results of the multi-weighted scoring system indicate a high level of compliance in the banking sector. On the other hand, the scores of the content analysis demonstrate higher scores in the disclosures of “basis of preparation and presentation”, “organizational overview and external environment”, “strategy and resource allocation”, “performance” and “business model” elements, while lower scores in the elements of “risk and opportunities” and “outlook.” The lowest compliance level associated with lower content analysis scores may indicate a low level of value creation potential. Consequently, this two-stage scoring is critical, as it clarifies the relation between compliance level and the explanatory power of each content element from a value creation perspective.


This study aims to support the policymakers and regulators in highlighting the importance of measuring and reporting value. Furthermore, it intends to encourage companies to produce reports that increase the value relevance of accounting information to contribute to the development of capital markets. The current literature includes research that mainly concentrates only on the quality or extent of IR disclosure practices. This study offers a combined analysis that helps to determine at what level a company has accomplished the expectations of the International Integrated Reporting Council in terms of both the content and the value creation potential.



Data availability statement: Publicly available data sets were analyzed in this study. This data can be found here: [].

Conflicts of interest: Authors declare no conflict of interest.


Aslanertik, B.E. and Yardımcı, B. (2022), "The relationship between compliance level and value creation: evidence from integrated reports in Turkey", Journal of Financial Reporting and Accounting, Vol. ahead-of-print No. ahead-of-print.



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