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1 – 10 of over 152000Belverd E. Needles, Mark L. Frigo, Marian Powers and Anton Shigaev
Prior research shows that companies that achieve high performance excel at certain financial objectives. This chapter addresses the question: Do companies that excel at these…
Abstract
Purpose
Prior research shows that companies that achieve high performance excel at certain financial objectives. This chapter addresses the question: Do companies that excel at these financial performance objectives also excel in integrated reporting and sustainability reporting?
Methodology/approach
We compare a sample of high performance companies (HPC) with a sample of companies that purport to support integrated reporting, and a sample that purport to support sustainability reporting. Our hypotheses are that HPC will equal or exceed the integrated reporting and sustainability reporting practices shown by International Integrated Reporting Committee (IIRC) and Global Reporting Initiative (GRI) companies and US companies will be less at these practices than non-US companies.
Findings
Our findings indicate that IIRC companies and GRI companies generally do not meet the high financial performance measures of the HPC. Based on an integrated reporting and sustainability reporting matrix, we show that HPC exhibit equal performance on the practices of sustainability and integrated reporting compared to GRI companies, but both HPC and GRI are lower on these practices than IIRC companies. Also, US companies disclose less information in sustainability reports and integrated reports as compared to non-US companies. Overall, all three groups fall short of full compliance with standards of integrated reporting and sustainability reporting.
Originality/value
This chapter provides evidence as to the financial performance and the current state of integrated reporting and sustainability reporting among HPC, GRI, and IIRC companies. This chapter highlights the global need for a generally accepted set of standards for sustainability and integrated reporting practices.
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The purpose of this paper is to examine the relationship between integrated reports, external assurance and financial performance for North American firms between 2011 and 2016.
Abstract
Purpose
The purpose of this paper is to examine the relationship between integrated reports, external assurance and financial performance for North American firms between 2011 and 2016.
Design/methodology/approach
Corporate websites were examined for disclosures which included both financial and non-financial information. Compustat North America and Global Reporting Initiative (GRI) websites provided additional data for the analysis.
Findings
Using a panel data analysis, the results provide evidence that there is a significant positive association between integrated reports and multiple measures of financial performance. Moreover, this positive effect is enhanced when integrated reports are assured by accounting firms.
Research limitations/implications
There are relatively a small number of firms that do this kind of reporting. A major limitation of the study is the small sample size.
Practical implications
As stakeholders find information in integrated reports relevant, there needs to be standardization on their content and level of assurance. Standard setters and regulators should be involved in setting these standards and assurance guidelines.
Social implications
Although it is clear that there is a cost to firms which produce integrated reports, the benefits to society may outweigh these costs. This may go beyond the benefits to shareholders as they make investment decisions.
Originality/value
According to the knowledge of the authors, this is the first study that examines the impact of integrated reports and external assurance on financial performance for North American firms.
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P.K. Nandram, A.J. Brouwer and H.P.A.J. Langendijk
This paper aims to investigate whether managers use impression management through the presentation of non-financial information in an integrated reporting setting.
Abstract
Purpose
This paper aims to investigate whether managers use impression management through the presentation of non-financial information in an integrated reporting setting.
Design/methodology/approach
The authors performed an experiment with experienced professional controllers and part-time students enrolled in the executive master’s degree in finance and control at universities in the Netherlands. In this experiment, we manipulated the financial performance to test if managers present non-financial information differently based on the firm’s financial performance.
Findings
This study found that impression management is not applied by including or excluding non-financial key performance indicators (KPIs) in the integrated report, but by using more prominent presentation forms for positive non-financial performance and non-prominent ones for negative non-financial performance. However, the use of impression management through the presentation form decreased when the firms’ financial performance was positive. In that instance, this study noted that managers statistically significantly more often decided to present poor non-financial performance in a prominent presentation format in comparison to managers who were not aware of the financial performance.
Research limitations/implications
A limitation of this paper is that the authors focused on only two impression management strategies: opportunistic/under-reporting and the presentation form. This analysis shows that the use of impression management mainly seems to occur through the presentation format. Future research could investigate other impression management strategies in an integrated reporting setting.
Practical implications
The results of this study are of importance for users of integrated reports, because it will provide more insight into whether firms are truly transparent in their integrated reports. Furthermore, the theoretical implication of this study is relevant to regulatory authorities, because it sheds light on the different forms of impression management used in integrated reporting and the influence of positively or negatively performing KPIs on the decisions of preparers of integrated reports.
Originality/value
Therefore, in this study, the authors add to prior literature by investigating the concept of impression management in an integrated reporting setting. More specifically, the authors perform an experiment and focus on different forms of impression management (the presentation format and under-reporting) through non-financial KPIs in an integrated reporting setting and link it to firm financial performance.
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Premaratne Samaranayake and Tritos Laosirihongthong
The purpose of this paper is to develop a conceptual framework of integrated supply chain model that can be used to measure, evaluate and monitor operational performance under…
Abstract
Purpose
The purpose of this paper is to develop a conceptual framework of integrated supply chain model that can be used to measure, evaluate and monitor operational performance under dynamic and uncertain conditions.
Design/methodology/approach
The research methodology consists of two stages: configuration of a conceptual framework of integrated supply chain model linked with performance measures and illustration of the integrated supply chain model and delivery performance using a case of dairy industry. The integrated supply chain model is based on a unitary structuring technique and forms the basis for measuring and evaluating supply chain performance. Delivery performance with variation of demand (forecast and actual) is monitored using a fuzzy-based decision support system, based on three inputs: capacity utilization (influenced by production disruption), raw materials shortage and quality of dairy products.
Findings
Integration of supply chain components (materials, resources, operations, activities, suppliers, etc.) of key processes using unitary structuring approach enables information integration in real time for performance evaluation and monitoring in complex supply chain situations. In addition, real-time performance monitoring is recognized as being of great importance for supply chain management in responding to uncertainties inherent in the operational environment.
Research limitations/implications
Implementation of an integrated model requires maintenance of supply chain components with all necessary data and information in a system environment such as enterprise resource planning.
Practical implications
The integrated model provides decision-makers with an overall view of supply chain components and direct links that need to be maintained for supply chain performance evaluation and monitoring. Wider adaptation and diffusion of the proposed model require further validation of the model and feasibility of implementation, using real-time data and information on selected performance measures.
Originality/value
Integration of supply chain components across supply chain processes directly linked with performance measures is a novel approach for effective supply chain performance evaluation and monitoring in complex supply chains under dynamic and uncertain conditions.
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Jiqin Han, Jacques H. Trienekens and S.W.F. (Onno) Omta
This paper seeks to discuss the interactions amongst integrated information technology (IT), integrated logistics management, quality management practices and firm performance of…
Abstract
Purpose
This paper seeks to discuss the interactions amongst integrated information technology (IT), integrated logistics management, quality management practices and firm performance of pork processors in China.
Design/methodology/approach
A conceptual framework was developed by examining the relationship between pork processors and their customers. A stratified random sample of 229 pork processors in eastern China provided data for empirical testing with partial least squares analysis.
Findings
Results revealed that integrated IT and integrated logistics management improved the quality management practices of the pork processors. The application of IT also facilitated integrated logistics management. While quality management practices had significant impact on firm performance, the findings indicated neither integrated IT nor integrated logistics management was significantly related to firm performance. However, integrated IT had an indirect impact on firm performance through quality management practices.
Practical implications
This study sheds light on the critical role of integrated information and logistics management in pork quality management. For business managers, a high level of firm performance greatly depends on quality management practices. The issue of improving IT and logistics management remains a challenging task for managers in the pork processing sector in mainland China.
Originality/value
Quantitative empirical study of the effects of integrated IT and logistics management on firm performance of the agrifood supply chain in China fills an important gap in research.
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Patricia J. Daugherty, Alexander E. Ellinger and Craig M. Gustin
Presents the results of a recent survey of logistics executives concerning their perceptions regarding integrated logistics. Focuses discussion on an assessment of the current…
Abstract
Presents the results of a recent survey of logistics executives concerning their perceptions regarding integrated logistics. Focuses discussion on an assessment of the current level of implementation of the integrated logistics concept among US firms and provides support for a relationship between integration and logistical performance improvements. Reveals that the results have significant managerial implications as more organizations place emphasis on supply chain management, and that internal and external integration are necessary to facilitate channel‐wide linkages and enhance channel efficiency.
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Yamina Chouaibi, Saida Belhouchet, Salim Chouaibi and Jamel Chouaibi
The purpose of this paper is to examine the effect of integrated reporting quality (IRQ) on the cost of equity and financial performance of Islamic banks (IBs) in the Middle East…
Abstract
Purpose
The purpose of this paper is to examine the effect of integrated reporting quality (IRQ) on the cost of equity and financial performance of Islamic banks (IBs) in the Middle East and North Africa (MENA) region.
Design/methodology/approach
This study examines 67 IBs in the MENA region over a period of six years (2015–2020). This paper is motivated by the use of the method of ordinary least on square panel data. A multiple regression model is used to analyze the impact of the quality of integrated reporting, on the one hand, on the cost of equity and, on the other hand, on the financial performance of IBs in the MENA region. Similarly, as an extension of the research, the authors exploited the dynamic effect of the data set through the generalized method of moments and estimated the impact of the one-year lagged value of the cost of equity.
Findings
The empirical results obtained do indicate that the quality of integrated reporting seems to have a significant negative effect on the cost of equity capital. It is also interesting to note that IRQ has a positive and significant impact on the financial performance of IBs.
Research limitations/implications
Current research can help and encourage IBs to provide quality information to reduce the cost of equity. Furthermore, this research could be a valuable source of information for policymakers, regulators and stakeholders on IB governance practices and disclosure. Finally, integrated reporting is very important for the progress and development of the Islamic banking sector.
Originality/value
This paper is motivated by the limited research on integrated reporting and financial performance of IBs. It makes an important contribution to the academic literature by adding to the limited body of research on the cost of equity, performance and quality of integrated reporting in the MENA region. This study is also important for the investors seeking to reduce the cost of equity to improve financial performance.
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Aqeel Ahmed, Sanjay Mathrani and Nihal Jayamaha
The aim of this paper is to explore the implementation of an integrated lean and ISO 14001 approach in meat industry for environmental performance and examine a proposed…
Abstract
Purpose
The aim of this paper is to explore the implementation of an integrated lean and ISO 14001 approach in meat industry for environmental performance and examine a proposed conceptual framework by capturing insights from lean and ISO 14001 experts in New Zealand (NZ).
Design/methodology/approach
Semi-structured interviews have been conducted with a group of consultants (lean and ISO 14001) to evaluate the suitability of an integrated lean and ISO 14001 approach in the meat industry for environmental performance. A conceptual framework from literature has guided this study leading to its further development based on the empirical evidence collected.
Findings
Findings have illustrated a synergistic positive impact of lean and ISO 14001 implementation as an integrated approach for sustaining environmental performance in the meat industry. A joint implementation program provides more clarity in aligning ISO 14001 operational procedures with lean tools and techniques for an enhanced environmental performance outcome.
Practical implications
The application of an integrated lean and ISO 14001 framework is proposed in this paper, which can help industry practitioners and academia in developing a joint implementation strategy and conducting future research.
Originality/value
To the best of the author’s knowledge, this study is the first to assess the effective implementation of lean and ISO 14001 as an integrated approach in the NZ meat industry.
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Mary-Anne McNally, Dannielle Cerbone and Warren Maroun
The purpose of this paper is to add to the limited body of interpretive research on integrated reporting by exploring challenges to preparing an integrated report. This is done…
Abstract
Purpose
The purpose of this paper is to add to the limited body of interpretive research on integrated reporting by exploring challenges to preparing an integrated report. This is done using an integrated thinking framework which stresses the importance of an interconnection between sustainability performance, proactive sustainability management and integrated reporting.
Design/methodology/approach
Detailed interviews with 26 preparers at 9 South African-based organisations highlight practical issues encountered when producing an integrated report.
Findings
Integrated reporting is not consistently seen as a natural part of the business process, despite the relevance of multiple types of capital for organisations’ business models. The new report format is imposed on existing internal processes and reporting protocols which precludes a broad understanding of the purpose of integrated reporting and limits the development of management control systems and a supporting accounting infrastructure. In this constrained environment, reporting guidelines are used as disclosure checklists, stakeholder engagement is limited, systems are not always compatible and data analysis is difficult. Preparers are also unconvinced that integrated reports are taken seriously by investors, further limiting the interconnection between sustainability performance and integrated reporting.
Research limitations/implications
Those charged with governance need to ensure that their organisations are identifying so-called non-financial issues as strategically relevant. Sustainability performance targets need to be clearly defined and linked to specific performance indicators. The management control systems and accounting infrastructure must be planned and developed to assist with the monitoring of sustainability performance and, in turn, to inform what information is included in integrated reports.
Originality/value
This study answers the calls for primary evidence on how integrated reports are prepared and the associated challenges. The findings add to the limited body of interpretive research on the functioning of corporate governance and accounting systems and offers practical insights for preparers and academics.
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The purpose of this paper is to outline the concept of integrated reporting and to propose a template for integrated reporting in organisations.
Abstract
Purpose
The purpose of this paper is to outline the concept of integrated reporting and to propose a template for integrated reporting in organisations.
Design/methodology/approach
The approach to the conceptual model is founded on concepts proposed on integrated reporting by the King Report on Governance for South Africa (King III), and the International Integrated Reporting Council in the UK.
Findings
The integrated report should explain the story of reaching the organisation's vision, underpinned by its values, enacted by management, monitored by governance, and using facets of resources relating to financial capital, intellectual capital, social capital, and environmental capital.
Practical implications
The paper proposes an integrated reporting framework, and provides an example of a template to be used in organisations.
Originality/value
To the best of the author's knowledge, this is the first academic paper that provides a coherent framework on integrated reporting, with a template.
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