Abstract:
This paper examines the association between integrated thinking and the overall quality of corporate reporting and the moderating effect of corporate performance (financial and non-financial) on this association. The research employs data of European listed companies during the years 2007 to 2017, and uses the integration/vision and strategy category (CGVS) from the ASSET4 database as proxy for integrated thinking. The results show a positive, significant association between integrated thinking and non-financial reporting quality and a positive, significant association between integrated thinking and overall reporting quality. Further, the results show a significant moderating effect of financial performance on the relations between integrated thinking and non-financial reporting quality and overall reporting quality. The results show no evidence of an association between integrated thinking and financial reporting quality (measured by earnings management) and no evidence of a moderating effect of financial or non-financial performance on this relation.
