Linking integrated reporting quality with sustainability performance and financial performance in South Africa

Simple item page
dc.contributor.authorMans-Kemp, Nadiaen_ZA
dc.contributor.authorVan der Lugt, Cornelis T.en_ZA
dc.date.accessioned2022-03-03T11:21:00Z
dc.date.available2022-03-03T11:21:00Z
dc.date.issued2020-08
dc.descriptionCITATION: Mans-Kemp, N. & Van der Lugt, C. T. 2020. Linking integrated reporting quality with sustainability performance and financial performance in South Africa. South African Journal of Economic and Management Sciences, 23(1):a3572, doi:10.4102/sajems.v23i1.3572.
dc.descriptionThe original publication is available at https://sajems.org
dc.description.abstractBackground: Ten years have lapsed since the launch of the International Integrated Reporting Council. Stakeholders increasingly question whether integrated reporting (IR) meets the objectives of decision-usefulness and accountability. Aim: The primary objective of this study was to assess the usefulness of IR by examining the interrelations between the integrated reporting quality (IRQ), sustainability performance and financial performance of listed companies in South Africa. Setting: The study is conducted in the country where integrated reporting is most established. The links between the IRQ of the Top 100 companies listed on Johannesburg Stock Exchange and their environmental, social and corporate governance (ESG) scores and multiple financial indicators are investigated over the period 2013 to 2018. Method: The EY Excellence in Integrated Reporting Awards was used as a metric to determine the sample companies’ IRQ. These awards were ranked according to four categories, namely ‘progress to be made’, ‘average’, ‘good’ and ‘excellent’. Sustainability (ESG scores) as well as financial performance data (accounting-based and market-based variables) were sourced from Bloomberg. The panel dataset was analysed by conducting a mixed-model analysis of variance and panel regressions. Results: A high level of IRQ was found to be significantly associated with high levels of environmental, social and corporate governance performance, as well as high earnings per share and high leverage. Conclusion: IR appears to strengthen managerial efficiency and legitimacy in the eyes of debt capital providers in South Africa, while equity capital providers do not provide a clear signal of approval.en_ZA
dc.description.urihttps://sajems.org/index.php/sajems/article/view/3572
dc.description.versionPublisher's version
dc.format.extent11 pages
dc.identifier.citationMans-Kemp, N. & Van der Lugt, C. T. 2020. Linking integrated reporting quality with sustainability performance and financial performance in South Africa. South African Journal of Economic and Management Sciences, 23(1):a3572, doi:10.4102/sajems.v23i1.3572.
dc.identifier.issn2222-3436 (online)
dc.identifier.issn1015-8812 (print)
dc.identifier.otherdoi:10.4102/sajems.v23i1.3572
dc.identifier.urihttp://hdl.handle.net/10019.1/124313
dc.language.isoen_ZAen_ZA
dc.publisherAOSIS
dc.rights.holderAuthors retain copyright
dc.subjectCorporate governance -- South Africaen_ZA
dc.subjectSustainable development -- South Africaen_ZA
dc.subjectCorporation reports -- South Africaen_ZA
dc.titleLinking integrated reporting quality with sustainability performance and financial performance in South Africaen_ZA
dc.typeArticleen_ZA
Files
Original bundle
Now showing 1 - 1 of 1
Thumbnail Image
Name:
manskemp_linking_2020.pdf
Size:
763.92 KB
Format:
Adobe Portable Document Format
Description:
Download article
Download
License bundle
Now showing 1 - 1 of 1
Thumbnail Image
Name:
license.txt
Size:
1.71 KB
Format:
Item-specific license agreed upon to submission
Description:
Download
Collections
Research Articles (Business Management)