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Article
Publication date: 3 August 2021

Nicola Raimo, Alessandra Caragnano, Massimo Mariani and Filippo Vitolla

In recent years, policymakers have increasingly pushed firms to disclose non-financial information. In Europe, integrated reporting (IR) is an increasingly adopted tool to fully…

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Abstract

Purpose

In recent years, policymakers have increasingly pushed firms to disclose non-financial information. In Europe, integrated reporting (IR) is an increasingly adopted tool to fully comply with the requirements of the Directive 2014/95/EU. This study aims to examine the financial benefits of IR quality and specifically the effect on the cost of debt.

Design/methodology/approach

A manual content analysis is performed to measure the quality of the information contained in integrated reports. A panel regression model is used to test the effect of the IR quality on the cost of debt on a sample of 399 observations (a balanced panel of 133 European listed firms for the period 2017–2019).

Findings

Results demonstrate a negative relationship between IR quality and the cost of debt, showing that firms that provide higher quality integrated reports benefit from access to third party financial resources at better conditions.

Research limitations/implications

The results of this study offer important implications for managers and policymakers. The capacity of IR quality to allow a cost of debt reduction should push managers to a greater propensity towards transparency and the dissemination of high quality integrated reports. In addition, in light of the benefits connected to the IR quality, policymakers should push towards the adoption of IR as a solution to fulfil the regulatory obligations deriving from Directive 2014/95/EU.

Practical implications

Results show the goodness of IR as an ideal solution to fulfil the obligations imposed by Directive 2014/95/EU. The important financial benefits associated with IR quality make the high quality integrated report an ideal tool capable of fulfilling regulatory obligations and at the same time guaranteeing a reduction in the cost of debt.

Originality/value

To the best of the authors’ knowledge, this is the first work that analyses the relationship between IR quality and cost of debt.

Details

Journal of Applied Accounting Research, vol. 23 no. 1
Type: Research Article
ISSN: 0967-5426

Keywords

Article
Publication date: 22 September 2020

Nicola Raimo, Alessandra Ricciardelli, Michele Rubino and Filippo Vitolla

Human capital (HC) represents a particularly important element capable of guiding the firms’ value creation process in the new economy. The purpose of this study is to analyze the…

1248

Abstract

Purpose

Human capital (HC) represents a particularly important element capable of guiding the firms’ value creation process in the new economy. The purpose of this study is to analyze the level of HC information contained within integrated reports and to identify the variables that influence the HC disclosure policies of companies.

Design/methodology/approach

Research hypotheses, developed on the basis of agency theory, were tested using a regression model on a sample of 137 worldwide companies. A HC disclosure index was designed to examine the level of HC disclosure and a content analysis was used to investigate the integrated reports.

Findings

Results showed a positive and significant impact of firm size, board size, board independence and board diversity on the level of HC information disclosed by companies within their integrated reports. On the contrary, they demonstrated a not significant effect of firm profitability.

Practical implications

Results have important implications for corporate executives, high-level corporate governance, policymakers and investors. They point out additional further motivations for creating larger boards and including non-executive members and women on the board. In addition, investors could use the HC disclosure index to evaluate companies’ HC disclosure policies in their investment decisions.

Originality/value

This study extends the agency theory application scope and extends the analysis of HC disclosure to other corporate documents, namely, integrated reports. Besides, it increases knowledge about the factors capable of influencing HC disclosure, identifying a series of elements capable of directly affecting the level of information that companies disclose.

Details

Measuring Business Excellence, vol. 24 no. 4
Type: Research Article
ISSN: 1368-3047

Keywords

Article
Publication date: 2 June 2021

Giuseppe Nicolò, Alessandra Ricciardelli, Nicola Raimo and Filippo Vitolla

This study, based on stakeholder theory, aims to analyse the factors that can affect the level of visual disclosure in the context of integrated reporting (IR), which represents…

Abstract

Purpose

This study, based on stakeholder theory, aims to analyse the factors that can affect the level of visual disclosure in the context of integrated reporting (IR), which represents the last frontier of corporate disclosure.

Design/methodology/approach

This study develops an innovative measure to measure the level of visual disclosure of integrated reports that takes into account the use and degree of integration of images and graphs. Furthermore, to test the hypotheses, this study uses a regression model on a sample of 134 international companies that published an integrated report in 2018.

Findings

The results show that firm size, firm profitability and industry environmental sensitivity positively affect the level of visual disclosure of the integrated reports.

Originality/value

To our knowledge, this is the first study that examines visual disclosure in the IR context. It also extends the field of application of the stakeholder theory, still little used to explain visual disclosure strategies, and increases knowledge on the determinants of IR.

Details

Management Decision, vol. 60 no. 4
Type: Research Article
ISSN: 0025-1747

Keywords

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