The influence of integrated thinking on corporate reporting quality
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As a consequence of changes in the business environment, such as globalisation and the financial crisis, corporate reports are expected to inform stakeholders about the company’s purpose, the business model and non-financial performance. However, the corporate reporting quality is being questioned. To enhance corporate reporting quality the integrated report was promoted however integrated reports function as legitimacy tactic. To enhance corporate reporting quality companies first need to be successful at integrated thinking. In this study, the relationship between integrated thinking and corporate reporting quality is explored. Using a panel data set of 1703 listed companies during the period 2006 – 2017, the results indicate a positive relation between integrated thinking and non-financial performance and a negative relation between integrated thinking on financial performance. The results also support a positive relation between non-financial performance and non-financial reporting quality and between financial performance and financial reporting quality. Furthermore, the results indicate a negative association between financial performance and non-financial reporting quality. However, the results don’t indicate an effect from integrated thinking on corporate reporting quality. This can be explained by the mediating relation from financial and non-financial performance. The findings of this study suggest a need to investigate the conditions in which integrated thinking has an effect on corporate reporting quality.
Faculteit der Managementwetenschappen