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Developing forward-looking orientation in integrated reporting

Developing forward-looking orientation in integrated reporting
Developing forward-looking orientation in integrated reporting
Purpose

According to the “strategic focus and future orientation” principle of the integrated reporting (<IR>) framework, <IR> should provide information useful to support investors in assessing the future financial performance of organizations. This study aims to support the operationalization of this function by improving the forward-looking orientation of the integrated report.

Design/methodology/approach

Basing on the backward- and forward-looking disclosure in <IR> and the dynamic resource-based view (DRBV), this study develops an explorative case study building a quantitative simulation model based on an integrated report.

Findings

This study provides useful insights into how operationalizing the <IR> “future orientation” and obtaining more quantitative information on the organization’s capacity to create value in the future by applying DRBV and quantitative simulation modeling.

Research limitations/implications

The article presents one case study to explore the method suggested to improve the <IR> forward-looking orientation. Additional case studies applying the same research design should be certainly useful to refine the method.

Practical implications

Supporting the <IR> forward-looking orientation, this study provides additional information for the decision-making process of investors, thus contributing to the efficient and productive allocation of capital.

Originality/value

Few studies have investigated forward-looking information in integrated reports, highlighting the existence of an “information gap” referred to such disclosure. Overcoming these previous results, the study provides useful insights on how to improve the <IR> forward-looking orientation.

Dynamic resource-based view, Forward-looking information, Integrated reporting, Integrated thinking, Simulation
2049-372X
1-28
Kunc, Martin
0b254052-f9f5-49f9-ac0b-148c257ba412
Barnabè, Federico
8b7ce324-1ab4-4a8e-b37e-9b762948e6f5
Giorgino, Maria Cleofe
4b629ddb-906e-488d-ab05-2c89a4b32e7f
Kunc, Martin
0b254052-f9f5-49f9-ac0b-148c257ba412
Barnabè, Federico
8b7ce324-1ab4-4a8e-b37e-9b762948e6f5
Giorgino, Maria Cleofe
4b629ddb-906e-488d-ab05-2c89a4b32e7f

Kunc, Martin, Barnabè, Federico and Giorgino, Maria Cleofe (2020) Developing forward-looking orientation in integrated reporting. Meditari Accountancy Research, 1-28. (doi:10.1108/MEDAR-12-2019-0664).

Record type: Article

Abstract

Purpose

According to the “strategic focus and future orientation” principle of the integrated reporting (<IR>) framework, <IR> should provide information useful to support investors in assessing the future financial performance of organizations. This study aims to support the operationalization of this function by improving the forward-looking orientation of the integrated report.

Design/methodology/approach

Basing on the backward- and forward-looking disclosure in <IR> and the dynamic resource-based view (DRBV), this study develops an explorative case study building a quantitative simulation model based on an integrated report.

Findings

This study provides useful insights into how operationalizing the <IR> “future orientation” and obtaining more quantitative information on the organization’s capacity to create value in the future by applying DRBV and quantitative simulation modeling.

Research limitations/implications

The article presents one case study to explore the method suggested to improve the <IR> forward-looking orientation. Additional case studies applying the same research design should be certainly useful to refine the method.

Practical implications

Supporting the <IR> forward-looking orientation, this study provides additional information for the decision-making process of investors, thus contributing to the efficient and productive allocation of capital.

Originality/value

Few studies have investigated forward-looking information in integrated reports, highlighting the existence of an “information gap” referred to such disclosure. Overcoming these previous results, the study provides useful insights on how to improve the <IR> forward-looking orientation.

Text
Meditari_Main article anonymous R1_FB_MG_MK - Accepted Manuscript
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More information

Accepted/In Press date: 20 April 2020
e-pub ahead of print date: 16 May 2020
Keywords: Dynamic resource-based view, Forward-looking information, Integrated reporting, Integrated thinking, Simulation

Identifiers

Local EPrints ID: 441222
URI: http://eprints.soton.ac.uk/id/eprint/441222
ISSN: 2049-372X
PURE UUID: a5e41979-cd81-4199-abbc-0a47ddb854b1
ORCID for Martin Kunc: ORCID iD orcid.org/0000-0002-3411-4052

Catalogue record

Date deposited: 05 Jun 2020 16:31
Last modified: 28 Apr 2022 02:26

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Contributors

Author: Martin Kunc ORCID iD
Author: Federico Barnabè
Author: Maria Cleofe Giorgino

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