Systematic review of integrated reporting: recent trend and future research agenda

Abstract

PurposeIntegrated reporting (<IR>) promotes transparency in corporate reporting and communicate detailed information on how a firm creates value in the short, medium and long-term. The purpose of this paper is to systematically review <IR> to provide insights into theories, determinants, consequences, contingent variables and methods that have been used in previous studies.Design/methodology/approachThe study was based on a systematic review of 17 articles published between 2017 and 2020.FindingsNine theories were used in prior studies. Board size, diversity, independence, level of activity of the board, the establishment of Higher Education Institutions (before or after 1992), adoption of IR framework, size, institutional ownership, sustainability committee and the use of non-financial performance measures in executives’ compensation contracts and separate risk management committees are determinants of <IR>. Further, the positive impact of <IR> on information asymmetry, market valuation of environmental, social and governance performance, financial performance, intellectual capital, sustainability embeddedness and organisational change, external sense of legitimacy and reputation, revenue growth, corporate environmental performance and circular economy-related information, with mixed findings for analyst earnings forecast accuracy, company value and market value. Only three studies used moderating and mediating variables to examine <IR>. Quantitative research approach and secondary data are most preferred by <IR> scholars.Research limitations/implicationsSome papers may have been omitted unintentionally, although the author did his best to include most of the prior published articles using a rigorous methodology.Practical implicationsThis paper set out future research agenda on how <IR> research could be enhanced.Originality/valueContrary to prior systematic reviews that consider individual constructs/concept, the review herein adopts a comprehensive approach and considers moderating and mediating variables aside from theories, effects and determinants of integrated reporting.