The influence of long-term orientation and integrated reporting on financial performance
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2019-08-14
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en
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Abstract
Integrated reporting is said to influence the financial performance of a company. Culture is said to influence the extent to which integrated reporting is adopted. This paper contributes to both statements and investigates the relation between the cultural dimension, long-term orientation, and integrated reporting on financial performance. The results show a positive effect of integrated reporting on long-term financial performance and a positive effect of long-term orientation on long-term financial performance. No effect of integrated reporting on short-term financial performance and long-term orientation on short-term financial performance is found. The results indicate that integrated reporting mediates the effect of long-term orientation on long-term financial performance. The positive effect of integrated reporting together with long-term orientation on long-term financial performance might indicate a complementary effect, the negative result on short-term financial performance might indicate a substitution effect. Both indicating that integrated reporting is expensive in the short run, but pays off in the long run.
Keywords: Culture, Hofstede, long-term orientation, integrated reporting, financial performance, Return on Assets, Tobin’s Q, mediation effect, moderation effect.
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Faculteit der Managementwetenschappen