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This study aims to offer empirical evidence on how integrated thinking affects the integrated reporting (IR) practice and how integrated thinking originates from board and management involvement, cross-functional integration and integral link between capitals and strategies.

This study is cross-sectional and uses a mixed-method approach. The empirical data for the quantitative approach were collected from the 129 public companies listed on Colombo Stock Exchange in Sri Lanka. The personale responsible for preparing the annual report are selected as the respondents of this study. This study used partial least square modelling to test the hypotheses. The quantitative approach results are triangulated across a qualitative research approach in semi-structural interviews with ten responsible officers of integrated reporting practices.

The central finding of this study is the significant positive relationship between integrated thinking and integrated reporting practice. The qualitative results supported the quantitative findings and show that board and management involvement, cross-functional integration and integral link between capital and strategy enhance the integrated reporting practice. Top management and board management have positive beliefs about the integrated reporting practice; they initiate, encourage, influence, involve and support it. Furthermore, all company departments are involved with the integrated reporting led by the finance department and practice good coordination, communication and collaboration between departments. Moreover, it also evidenced their concern about the linkage between capital and strategy and how they do it in their organisation when practising integrated reporting.

The firms which intend to practice or enhance integrated reporting will be benefited from this study. Hence, this research assists in constructing IT through the direct role of the board and senior leadership, breaking down silos to diffuse IR throughout structures and processes, and concentrating on strategies while managing their capitals and relationships over the long term.

This study provides the initial quantitative empirical evidence on the impact of integrated thinking on integrated reporting practice. To the best of the authors’ knowledge, this study is the first to operationalise both integrated thinking and integrated reporting based on a questionnaire that developed and tested both constructs as higher-order reflective formative and on the relationship between integrated thinking and integrated reporting. The mixed-method approach to examine the relationship between integrated thinking and integrated reporting provides additional insights into the existing literature.

Given the significant role of both integrated reporting and cost of capital in the survival and prosperity of a firm, it is essential to understand their relationship by investigating whether integrated reporting influences the cost of capital of a firm. This research paper aims to examine the impact of integrated reporting practice on the cost of capital of listed firms in sub-Saharan Africa (SSA).

The study covered a period of 10 years from 2009 to 2018. One hundred and forty-seven listed firms in 10 SSA countries were used for the study. The study employed panel data analysis and utilised a dynamic estimation technique called the generalised method of moments.

The evidence shows that integrated reporting has a negative relationship with cost of capital, indicating integrated reporting can reduce firms' cost of capital. The results further showed that social, governance and environmental disclosures all have negative relationships with cost of capital, suggesting that firms that make these disclosures would have a lower cost of capital. These results are consistent with signalling theory, which holds that firms send a positive signal to the market about their performance and prospects when they provide information relating to value creation, predominantly environmental, social and governance issues.

The major limitation of the study is the selection of only English-speaking countries. French-speaking countries may have a different reporting practice, hence a different effect on the cost of capital.

This study contributes to policy development on integrated reporting in SSA and informs key stakeholders involved in promoting and supporting the adoption of integrated reporting in Africa.

The findings from this paper consolidate existing research in integrated reporting and cost of capital by providing empirical evidence on the relationship between integrated reporting, its components and the cost of capital from emerging economies. This study contributes to the understanding of investors' reactions to integrated reporting. Further, it fills a gap in the non-availability of literature on the relative impact of the various components of integrated reporting.

There are still many different theoretical approaches and practical interpretations about what an integrated report is. Starting from this premise, the overall purpose of this chapter is to critically analyze the relationship between integrated reporting (IR) and social/sustainability disclosure. Indeed, although some scholars considered IR as a tool to improve the sustainability approach of the companies allowing to disclose more relevant social information, others are more critical about the potentiality of IR to improve social disclosure. Therefore, the general research question is: Is there a natural link between IR and social disclosure (true love) or is the IR a practice to “normalize” the social disclosure and accounting (forced marriage)?

In the attempt to provide a preliminary answer to the research question, the chapter analyzes what is the approach of three categories: (1) academics; (2) soft-regulators; and (3) companies. From the methodological point of view, a mixed method of analysis has been adopted.

From the analysis of the three different points of view, IR can be considered as a “contested concept” because of the heterogeneous and sometimes conflicting interpretations and implementation that are done on this type of report. This leads to relevant theoretical and practical implications.

This chapter investigates how integrated reporting (IR) can contribute to a better corporate social responsibility (CSR) implementation through diffusion and adoption of CSR practices and actually applying the CSR discourse. Based on innovation diffusion theory, we intend to analyse the diffusion and adoption of CSR on the grounds of IR. The purpose of this study is to demonstrate that IR does indeed represent a mean of reducing the gaps between CSR discourse and its implementation. In order to select the most relevant papers in the area of CSR and IR, we applied the method of positive research. Therefore, the review of literature was made by analysing various theoretical and empirical studies. Setting the main coordinates for CSR and IR through theoretical background, we continue with an empirical analysis on 23 companies that voluntarily publish integrated reports. We intend to demonstrate that IR encourages a diffusion of CSR practices, as companies become more interested in their CSR behaviour.

This paper aims to explore the reporting challenges and related organisational mechanisms of change associated with disclosing corporate risks within integrated reports.

This paper adopts a Latourian performative approach to explore the organisational mechanisms of change in terms of networks of actors, both “human” and “non-human”, involved in the preparation of risk-related disclosure. Empirical evidence is collected by means of in-depth interviews with the preparers of an integrated reporting pioneer company.

Preparing disclosure on corporate risks in the context of integrated reporting demands close interaction among several actors. When disclosure shifts from listing key risks to providing information on how these risks are managed or connect with corporate strategy and value creation, departments not usually involved in corporate reporting play an active role and external stakeholders offer pertinent insights, benchmarks and feedback. Integrated reporting and risk management frameworks are the “non-human” actors that facilitate the engagement of diverse “human” actors.

Preparers should be aware that risk disclosure within integrated reports requires collaboration among (“human”) actors belonging to different departments and the engagement of external stakeholders. Preparers should consider the frameworks of integrated reporting and risk management as facilitators of cross-departmental discussions and dialogue, rather than mere contributors of guidelines and recommendations.

This study enriches the scant literature on organisational mechanisms of change made in response to integrated reporting challenges, showing subsequent advancements in the organisational process underlying the preparation of risk disclosure.

The purpose of this paper is to examine the trend of integrated reporting (IR) practice following the introduction of an “apply or explain” IR requirement in South Africa. In particular, the authors examine whether the IR practice is ceremonial or substantive in the context of a soft regulatory environment.

By way of content analyses, the authors examine the extent and quality of IR practice using an IR checklist developed based on normative understanding of existing IR guidelines. The evidence is drawn from 246 integrated reports of large South African companies over a three-year period (2011-2013), following the introduction of IR requirement in South Africa.

The results show a significant increase in the extent and quality of IR practice. The findings also reveal significant improvements in individual IR categories such as connectivity of information, materiality determination process and reliability and completeness of the integrated reports. However, despite the increasing trend and evidence of both symbolic and substantive IR practice, the authors conclude that the current IR practice is largely ceremonial in nature, produced to acquire organisational legitimacy.

For academics, the authors argue that there is a need to move away from the “what” and “why” aspects of the IR agenda to “how” IR should work inside organisations. In particular, academics should engage with firms through interventionist research to help firms implement integrated thinking and substantive reporting practices. For organisations, the findings draw attention to specific aspects of IR that require improvement. For policymakers, the study provides evidence based on the developmental stage of IR practice and draws attention to certain areas that need clarification. In particular, the International Integrated Reporting Council and Integrated Reporting Committee of South Africa should provide detailed guidelines on connectivity of information, material issues and disclosure of multiple capitals and their trade-offs. Finally, for educators, in line with the ACCA’s embedment of IR in its accounting courses, there is a need to incorporate IR in the curriculum; in particular, the authors argue that the best way to advance IR is in a “ubiquitous” spread in accounting and management courses.

This study provides empirical account of IR practice over time in the context of a regulatory IR environment. The construction of an IR checklist developed based on normative understanding of local and international IR guidelines is another novel approach of this study.

The purpose of this paper is to investigate the intellectual capital (IC) ontology in an integrated reporting context to explore the function that integrated report (IR) preparers assign to IC elements and the role of integrated thinking in this process.

Social ontology theory helps elucidate how an energy-sector company socially constructed an IC ontology in which IC is a core element of the value creation story told in the IR. The empirical analysis benefited from in-depth interviews with the corporate staff.

The subjective nature of IC ontology emerges, in that IC’s function is defined during the very process of IR preparation. The intangible elements drive sustainability-oriented financial value creation according to the sustainability approach embraced by the company’s business model. Integrated thinking both facilitates this perspective on IC is shared among various departments of the company and provides a procedure for scrutinising what counts as IC in this integrated reporting context.

The research scope is limited to the IR preparation process. Further research could explore IC ontologies beyond this process.

This study is the first to explore IC ontology empirically within an innovative integrated reporting context. It opens paths to further research on the relationships between IC and integrated thinking.

Motivated by Morgan’s (1997) analysis of the “paradoxical” role of metaphors in understanding and managing organisations, the purpose of this paper is to assess in what respects organisations using integrated reporting (IR) are on a “journey” of organisational change.

The paper analyses IR practitioner literature to interpret the IR journey metaphor more precisely. The authors then use in-depth interviews to assess the extent to which this metaphor captures how six early adopter organisations in Australia implement IR, and what changes result, over four years.

The journey metaphor implies substantive and holistic organisational change. By contrast, the authors find organisations use IR in contextual, instrumental and piecemeal ways. The authors propose a “toolbox” metaphor to help (re)present how organisations adapt their reporting to fit decisions already made, and challenges presented, through ordinary and ongoing strategic management.

Morgan (1997) stresses metaphors are invariably used to both describe and manage organisations. The authors’ analysis identifies specific ways the IR journey metaphor is descriptively misleading. The authors’ “toolbox” metaphor suggests different ways organisations are, or could, manage IR to create value.

This is the first paper to provide a systematic analysis of the IR journey metaphors, and to assess in what respects this metaphor captures actual organisational practice. The findings also challenge the broader notion in academic research that reporting frameworks can lead organisational change.

This paper aims to provide insights into salient issues in the development of the Integrated Reporting (<IR>) Framework, and emerging issues in the implementation of this Framework, with the aim of identifying opportunities for future research. The International Integrated Reporting Council (IIRC) has recently produced a reporting framework for the preparation of a concise, user-oriented corporate report which expands the scope of a company’s reporting using a multiple capitals concept and requires a description of a company’s business model, allowing a better communication of its value creation proposition. To gain international acceptance, the market-based benefits of adopting the framework must be demonstrated.

The paper takes the form of an archival analysis of the responses to the IIRC’s public consultation phases, providing insights into arguments for and against salient aspects of the framework, and identifying issues that would benefit from future research.

Identifying issues that arose during the framework preparation, this paper identifies a range of future research opportunities and outlines the research approaches by which academics can assess the costs and benefits of companies reporting in accordance with the <IR> Framework and assuring this information.

Research opportunities associated with the International <IR>) Framework and associated assurance are identified.

This paper provides insights and details of the process of adoption of <IR> and has implications for adopters and assurance providers of integrated reports, standard setters and regulators. The development of a sophisticated business case informed by rigorous research will be critical to the further uptake of <IR>.

Research opportunities identified include the expansion of the <IR> Framework to reporting entities other than corporations, including government and not-for-profit organisations, as well as measurement and assurance of a broader array of capitals, including social capital.

The paper identifies <IR> research opportunities from an archival analysis of the responses to the IIRC’s public consultation phases, providing insights into arguments for and against salient aspects of the framework that would benefit from future research.

Integrated thinking is central to the International Integrated Reporting Council’s (IIRC’s) integrated reporting (IR) framework, which is in turn is related to a potential resurgence of intellectual capital (IC) reporting. However, it remains unclear how key IR stakeholders understand this concept in theory or practice. The purpose of this paper is to explore how key stakeholders interpret integrated thinking; and how pilot organizations are applying integrated thinking in practice.

The study involved in-depth semi-structured interviews with key IR stakeholders in Australia, including two IR pilot organizations, one professional association, an accounting professional body, an accounting firm and two IIRC officials.

First, the IIRC has not fully defined and articulated the concept of integrated thinking, and there is no shared consensus among practitioners. Second, there is evidence of an evolving understanding of integrated thinking within practice. What remains unclear is how this understanding will develop over time.

Since interviews were conducted with a relatively small sample of participants in Australia, the results may not be generalizable across different contexts. The study emphasizes the need to interpret carefully IR’s potential contribution to organizational practice through either reporting in general, or IC reporting in particular.

Despite the centrality of integrated thinking to IR, there has been limited research to date on the concept. Clarifying what integrated thinking means in practice can improve our understanding of a key IR concept, and can advance our understanding of IR’s potential to improve IC reporting and research.