Abstract
This study examines the determinants of companies’ reporting decisions. We employ three measures at the country-level: (1) investor protection, (2) trade union density, and (3) economic development. Regression model analysis was used to measure whether companies used integrated reports (IR) or traditional sustainable reports. Using sample data from Fortune Global 300 for the year 2017, which is the latest available data, this paper follows logistic regression models. The study finds out that the probabilities of publication of IR are high in countries with high trade union density, weak investor protection, and low levels of economic development. These results help companies and managers to better cope with current business environments.
Highlights
Recent studies (Jensen & Berg, 2012; Krzus, 2011; Lodhia, 2015; Velte & Stawinoga, 2017) have shown that a new report contains both financial and non-financial information appears more to be more connected to the actual environment of current companies
Using a sample from Fortune Global 300 in the year 2017, the latest available time for all data, this study finds out that the probabilities of the publication of integrated report (IR) are higher in countries of higher trade union density, less investor protection, and lower level of economic development
The results show that neither investor protection nor economic development encourages the publication of IR
Summary
Recent studies (Jensen & Berg, 2012; Krzus, 2011; Lodhia, 2015; Velte & Stawinoga, 2017) have shown that a new report contains both financial and non-financial information appears more to be more connected to the actual environment of current companies. It is suggested that the production of integrated report (IR) seems crucial in the modern business world because IR considers all aspects that will influence the decision-making process and links the future risks and targets to the previous years’ performance shown in financial figures (Jensen & Berg, 2012). The structures of IR are changing rapidly, so it is hard for companies to come up with a proper way to publish (Stubbs & Higgins, 2014). It is uncertain why many companies choose to use IR in the present business world. Research was conducted by Jensen and Berg (2012) on why companies choose to publish IR based on the year
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