Does Integrated Reporting Foster Integrated Thinking? Evidence from Firms Listed on the JSE

Abstract

The aim of this paper is to investigate the causal mechanism through which Integrated Reporting (IR) possibly fosters Integrated Thinking (IT) in a regulated implementation environment. This case study has a heuristic (Eckstein, 2000) approach with the purpose of developing propositions that could serve as input for a typological theory. Cases were selected from firms listed on the Johannesburg Stock Exchange (JSE). The typology and model proposed in this paper partially explain the causal path between (IR) quality and IT and the heterogeneity in quality found by previous research in firms listed on the JSE. This paper relies on secondary sources; therefore, it could have ignored other causal paths or intermediate variables different to those proposed by the model. The typology and model proposed could have relevant implications for stock exchanges interested in a regulated IR implementation and the IIRC (International Integrated Reporting Council).