A practice theoretical analysis of the irrelevance of integrated reporting to mainstream sell‐side analysts. (1st May 2018)

• Record Type: Journal Article
• Authors: Abhayawansa, Subhash; Elijido‐Ten, Evangeline; Dumay, John
• Is Part Of: Accounting and finance. Volume 59:Number 3(2019)
• Page Start: 1615
• Page End: 1647
• Publication Date: 2018-05-01
• Subjects: Capital market -- Company valuation -- Integrated reporting -- Practice theory -- Sell‐side analysts; Accounting -- Periodicals; Finance -- Periodicals; 657.05
• DOI: 10.1111/acfi.12367
• Languages: English
• ISSNs: 0810-5391

Abstract

Abstract: This study investigates whether integrated reporting (IR) is achieving its intended purpose by focusing on its usefulness as perceived by sell‐side analysts. The main data come from 23 analysts who covered companies participating in the Pilot Programme Business Network of the International Integrated Reporting Council as of 2013. We find that IR has not connected with analysts' practice of firm assessment. The improvements resulting from the adoption of integrated reporting are not relevant to analysts, as the reports do not provide the information required by analysts in sufficient detail or preferred format.