Abstract
Within the present-day economic situation ensuring a competitive position coincides with its ability of managing its relationship with the stakeholders regarding the distribution of the added value and setting up of a legit consensus between them and the company itself. The main objectives of the study focus both on identifying the reasons that led to the development of the information transparency in order to satisfy the stakeholders’ expectations within the Integrated Reporting (IR) and on the dynamic analysis of the main economic and financial factors (from a sample of 180 companies quoted on the stock exchange during 2008–2017) that were the foundation of the statistical design for evaluating the companies’ ability to satisfy the stakeholders’ expectations. The research methods refer to identifying those evaluation methods in terms of the IR’s quality and compliance regarding the stakeholders’ expectations based on the analysis of the database and the econometric model. The final results can be very useful both for those companies that are already using or will choose to apply the IR in the near future and for the potential stakeholders as they have the option of evaluating beforehand the degree of satisfaction of their expectations in relationship with the reporting company.
Highlights
The companies’ ability based on the Integrated Reporting (IR) to comply to the stakeholders’ expectations has always been a scientific matter that has sparked the researchers’ interest from the point of view of both the adjusting market mechanisms and the concern for attracting the investment capital.Several stakeholders have expressed concerns over the significant rise in financial and non-financial reporting by firms in recent years (e.g. Ernst & Young, 2012).the changes that have come up in terms of the requirements of stakeholders, both from the point of view of their volume and structure have made the companies react to these necessities by taking on the use of an efficient tool for satisfying the legit expectations of stakeholders, namely by disclosing certain highquality information
This led to the design of the following estimation econometric model: Ù price earnings ratio (PER) 1⁄4 À1, 88 Ã asset turnover (AsT) þ 221 Ã goodwill to the assets ratio (GWAsT) þ 2, 78 Ã DErÀ2, 31 Ã return on equity (ROE) þ 7, 81 Ã return on assets (ROA)
As far as the accounting indicators are concerned, the analysis was done by observing the ROA, an indicator that is frequently used in order to measure the business performance and the ROE that is the stakeholders’ main concern (Yoshikawa & Phan, 2003)
Summary
The companies’ ability based on the IR to comply to the stakeholders’ expectations has always been a scientific matter that has sparked the researchers’ interest from the point of view of both the adjusting market mechanisms and the concern for attracting the investment capital. The changes that have come up in terms of the requirements of stakeholders, both from the point of view of their volume and structure have made the companies react to these necessities by taking on the use of an efficient tool for satisfying the legit expectations of stakeholders, namely by disclosing certain highquality information. IR may be viewed as a set of processes and activities through which a company offers both financial and non-financial information on the company’s strategy, performance and predictions of its own activity. IR has the function of establishing those connections that were established between the social and the environment performance, on the one hand, and the economic and financial performance, on the other hand, by manifesting itself as an useful tool especially for the medium and long-term investors as well as for the other categories of interested categories (Fasan, 2017)
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