Non-financial Disclosure and Integrated Reporting: Theoretical Framework and Empirical Evidence (SIDREA Series in Accounting and Business Administration)

✍ Scribed by Lino Cinquini (editor), Francesco De Luca (editor)

• Publisher: Springer
• Year: 2022
• Tongue: English
• Leaves: 477
• Category: Library

✦ Synopsis

The increasingly crucial role of companies’ non-financial disclosure (NFD) and integrated reporting (IR) has led to a lively debate among academics, practitioners, and regulators on the approaches, framework, contents, principles, and standards that should oversee these forms of reporting. Through several expert contributions, conducted both with qualitative and quantitative methodologies, this book provides an up-to-date portrait of the debate by exploring corporate NFD either in its mandated contents or voluntary information. Contributing authors provide studies that encompass the different lines of NFD, namely non-financial risk reporting, sustainability reporting, and intellectual capital reporting, as well as the integration of financial and non-financial information through IR, the assurance of the NFD and IR through auditing activities, and the role of management and CFOs in NFD and IR.

✦ Table of Contents

Non-financial Disclosure and Integrated Reporting
Preface
Contents
Contributors
Part I: Corporate Non-financial Disclosure
Do Corporate Governance Mechanisms Affect the Non-financial Reporting Readability? Evidence from Italy
1 Introduction
2 Background and Literature Review
2.1 The Directive No 2014/95/EU
2.2 Readability of Non-financial Information
3 Theoretical Background and HP Development
3.1 Theoretical Background
3.2 Hypotheses Development
3.2.1 Corporate Board Independence and NFI Readability
3.2.2 Gender Diversity and NFI Readability
3.2.3 The Sustainability Committee and NFI Readability
4 Research Design
4.1 Sample Selection
4.2 The Measurement of Variables
4.2.1 Dependent Variables: The Readability Indexes
4.2.2 Independent Variables
4.2.3 Control Variables
4.3 The Regression Model
5 Results
5.1 Descriptive Statistics
5.2 Regression Results
5.3 Additional Analysis
6 Discussion
7 Concluding Remarks
References
The Disclosure of Non-financial Risk. The Emerging of Cyber-Risk
1 Introduction
2 The Theoretical Background
2.1 The Voluntary Disclosure of the Non-financial Risk
2.2 The Regulatory Framework for the Non-financial Risk Disclosure
2.3 The Role of Internal Auditing for the Disclosure of Digital Risk
3 The Disclosure of Digital Risk. An Empirical Investigation on the Governance Literature
3.1 Methodology
3.2 Data Analysis
3.3 Discussion of Findings
4 Conclusion
References
Implementing SDGs and Mandatory Non-financial Reporting in Corporate Practices: Insight from an Italian Global Player
1 Introduction
2 Literature Review
2.1 Non-financial Disclosure and the Directive 2014/95/EU
2.2 Non-financial Disclosure and Corporate Governance
2.2.1 The Agency Problem and the Disclosure of Information
2.2.2 Corporate Governance Mechanisms and Non-financial Disclosure
3 Theoretical Background
3.1 Shareholder and Stakeholder Theories
3.2 Stewardship Theory
3.3 Agency, Stewardship, and Sustainability Practices
4 Research Methodology
4.1 Case Study Approach and the Selected Company
4.2 Data Collection and Analysis
5 Findings and Discussion
5.1 The Integration of SDGs into Sustainability Strategy
5.2 Sustainability Corporate Governance Structure
5.3 Organisational Changes for Non-financial Disclosure
6 Concluding Remarks
References
Part II: Social and Environmental Sustainability
A Systematic Literature Review of Theories Underpinning Sustainability Reporting in Non-financial Disclosure
1 Introduction
2 Methodology
3 Results and Discussion
3.1 Main Theories
3.1.1 Legitimacy Theory
3.1.2 Stakeholder Theory
3.1.3 Institutional Theory
3.2 Interconnections Between Theories
3.2.1 Legitimacy Theory Combined with Other Theories
3.2.2 Multi-theory Articles
3.3 Minor Theories
3.3.1 Agency Theory
3.3.2 Signaling Theory
3.3.3 Laclau and Mouffe´s Theory of Discourse
3.3.4 Attribution Theory
3.3.5 Social Movement Theory
3.3.6 Structuration Theory
4 Conclusions
References
Sustainability and Greenhouse Gas Emissions Disclosure: A Systematic Literature Review About Empirical Studies
1 Introduction
2 Research Methods
3 Findings
3.1 Main Information Derived from the Biblioanalysis Function
3.2 Main Information Derived from the Summary and Plot Function
3.3 Main Information Derived from the Citations Function
3.4 Qualitative Analysis
3.4.1 Jurisdiction (A)
3.4.2 Location (B)
3.4.3 Focus of the Article (C)
3.4.4 Research Methods (D)
3.4.5 Frameworks, Models, and Theories (E)
3.4.6 Academic and/or Practitioner Authors (F)
3.4.7 Objective of the Paper (G)
4 Discussion and Conclusions
Appendix: The 19 Articles Within the Sample
References
Sustainability Reporting in Higher Education Institutions: Evidence from an Italian Case
1 Introduction
2 Literature Review
3 Research Method
4 Findings
5 Conclusions
References
Part III: Intangibles and Intellectual Capital Disclosure
Theoretical Aspects of Intangibles and Intellectual Capital Disclosure Through the Main Frameworks of Integrated Reporting and...
1 Introduction
2 Intellectual Capital Reporting
3 From IC Reporting to GRI Reporting
4 From IC Reporting to Integrated Reporting
5 Concluding Remarks
References
Non-financial Information About Intangibles and CSR in the Context of Mandated Non-financial Disclosure: A Configurational Approach for Italian Listed Companies
1 Introduction
2 Institutional Context
3 Literature Review
4 Research Method
4.1 Sample Selection
4.2 Analysis Technique
4.3 Variables and Measurement
5 Results
6 Discussion
7 Conclusion and Future Research
List of Companies Included in the Sample
References
The Influence of Ownership Structure on Intellectual Capital Disclosure Quality
1 Introduction
2 Theoretical Background and Literature Review
3 Hypotheses Development
4 Research Methodology
4.1 Sample
4.2 Variables and Model Specification
5 Results and Discussion
5.1 Descriptive Statistics and Correlation Analysis
5.2 Regression Analysis
6 Conclusions
References
The Intellectual Capital Disclosure in the Management Report Before and After the European Directive 95/2014 in Italy
1 Introduction
2 The Regulation of Intellectual Capital Disclosure in Corporate Reporting
3 Literature Review
4 Methodology
4.1 Sample
4.2 Research Method
5 Results
6 Conclusions
References
The Effect of Non-financial Information about Intellectual Capital on the Financial Performance of Non-profit Companies: An Impact Accounting Perspective
1 Introduction
2 Theoretical Framework
3 Methodology
4 Findings
5 Conclusions
References
Part IV: Integrated Reporting
Theories in Integrated Reporting and Non-financial Information Research
1 Introduction
2 Research Methodology
3 The Framework Used to Frame Research on Integrated Reporting Practices
4 Results
4.1 An Overview of the Theories
4.2 Theories Adopted in Qualitative Studies on Reporting Processes
4.3 Theories Adopted in Quantitative Studies on Reporting Processes
4.4 Theories Adopted in Qualitative Studies on Reporting Impacts or Determinants
4.5 Theories Adopted in Quantitative Studies on Reporting Impacts or Determinants
5 Discussion and Concluding Remarks
References
Information Integration, Connectivity, and Readability of Integrated Reports: A Literature Review
1 Introduction
2 Research Methodology
3 Coding Scheme and Descriptive Analysis
3.1 External Qualitative Approach
3.2 External Quantitative Approach
3.3 Internal Qualitative Approach
3.4 Main Theories Applied
4 Concluding Remarks, Gaps, and Future Research
References
Integrated Reporting in the Public Sector: How Is the Research Developing?
1 Introduction
2 Methodology
3 A Descriptive Analysis of the Dataset
3.1 Type of Documents and Research Source
3.2 Year of Publication
3.3 Research Setting
3.4 Research Method
4 Theoretical Approaches: An Overview
4.1 Non-Theoretical Studies
4.2 Theoretical Studies
4.2.1 Stakeholder, Legitimacy and Institutional Theories
4.2.2 Other Frameworks
5 Discussion and Concluding Remarks
References: Studies Reviewed
Other References
The Role of Technology in Integrated Reporting: Practical Insights from the 2020 Framework Revision Consultation
1 Introduction
2 Technology and Integrated Reporting: Some Premises
3 The IR Technology Initiative
4 The Role of Technology in Corporate Reporting
5 Conclusions
References
The Potential Contribution of XBRL
1 Introduction
2 A Brief Overview of XBRL
2.1 XBRL Compared with Other Digital Formats
2.2 The Inline XBRL Specification
3 The Potential Contribution to NFD and IR
4 The Challenge of ESEF Adoption
5 Conclusion
References
Part V: Accountability and Auditing of Non-financial Information and Integrated Reporting
Harmonisation or Standardisation of Non-financial Reporting in European Union: The Role of Regulation
1 Introduction
2 Research Design and Method
3 International Frameworks and Guidelines for NFR
3.1 The Eco-Management and Audit Scheme (EMAS)
3.2 The UN Global Compact
3.3 The UN Guiding Principles on Business and Human Rights
3.4 The Organisation for Economic Co-operation and Development (OECD) Guidelines for Multinational Enterprises
3.5 The ISO 26000
3.6 The International Labour Organization´s Tripartite Declaration of Principles Concerning Multinational Enterprises and Soci...
3.7 Global Reporting Initiative (GRI)
4 A Comparative Analysis of NFR Frameworks and Guidelines and NFRD Requirements
5 Conclusion
References
Evolutionary Trends of Intangibles Disclosure Within Non-financial Reporting
1 Introduction
2 The Growing Relevance of Intangible Assets
3 Guidelines for External Reporting of Intangible Resources
3.1 Intangible Resources and IIRC
3.2 Intangible Resources and GRI
4 Discussion and Conclusion
References
Limited or Reasonable Assurance for NFI?: Effectiveness and Criticalities
1 An Overview of How Member States Have Implemented the EU Directive on Non-financial Information Regarding the Auditor´s Invo...
2 Limited or Reasonable Assurance
3 A Possible Way Forward Through Mixed Assurance
References
Assurance of Nonfinancial Information: A Comprehensive Literature Review
1 Introduction
2 Methodology
3 Results of the Descriptive Analysis
4 Results of the Thematic Analysis
5 Avenues for Future Research
6 Discussion and Conclusion
References
National Differences in Non-financial Disclosure: A Cross-Country Analysis
1 Introduction
2 Methodology
3 Results: Main Differences and Similarities
4 Discussion and Conclusions
References
The Role and Expectations of Stakeholders in the New Non-financial Disclosure Regulations
1 Introduction
2 Methodology and Literature Review
3 Discussion
4 Conclusion
References
Directive 2014/95/EU: Insights into the Auditor´s Role
1 Introduction
2 Institutional Setting
3 Method
4 Findings
5 Conclusions
References
Critical Considerations on the Association Between External Assurance of Non-financial Information and Materiality Disclosure Quality in an Integrated Report Context
1 Introduction
2 The Integrated Reporting Framework (IRF)
3 The Assurance of Non-financial Information in an Integrated Report Context: Specificities
4 The Significance of the Materiality Principle for Non-financial Information in the Integrated Report
5 The Association Between External Assurance of NFI and Materiality Disclosure Quality in the IR Context
6 Discussions and Conclusions
References
Part VI: The Role of CFOs and Controllers in the Non-financial Reporting
The Role of CFO and Controller in the Non-financial Information Process: Preliminary Results from an Exploratory Study
1 Introduction
2 Literature Analysis
3 Research Methodology
4 Case Study Analysis
4.1 Case Study 1: Alpha
4.1.1 Non-financial Information Creation Process
4.1.2 Non-financial Information Impact on the Organization
4.1.3 Non-financial Information vs. Finance and Control Function
4.2 Case Study 2: Beta
4.2.1 Non-financial Information Creation Process
4.2.2 Non-financial Information Impact on the Organization
4.2.3 Non-financial Information vs. Finance and Control Function
4.3 Case Study 3: Gamma
4.3.1 Non-financial Information Creation Process
4.3.2 Non-financial Information Impact on the Organization
4.3.3 Non-financial Information vs. Finance and Control Function
4.4 Summary of Findings
5 Discussions and Conclusions
References
Non-financial Disclosure and Materiality: Exploring the Role of CFOs
1 Introduction
2 Materiality in Non-financial Information Disclosure
2.1 Non-financial Materiality in the International NFD Frameworks
2.2 Prior Research on Non-financial Materiality
3 Research Methodology
3.1 Case Study 1: Biesse Group S.p.A.
3.1.1 Company Overview
3.1.2 The Implementation of the DNF and the Sustainability Reporting Journey in Biesse
3.1.3 The ``Driver´´ of the Materiality Analysis Process
3.1.4 Leading and Complementing the Materiality Process: Further Perspectives
3.2 Case Study 2: Iren
3.2.1 Iren´s Sustainability Reporting Processes and the Materiality Analysis
3.2.2 The Role of the CFO in the Process
3.2.3 Conclusions
4 Discussion and Conclusions
4.1 Discussion About the Findings and Practical Implications
4.2 Limitations and Direction for Further Research
References