Integrated reporting business models and the role of presentation format: insight from an eye tracking study
Abstract
Purpose
The integrated reporting framework affords considerable discretion over the form and content of business model disclosures, but a diagrammatic representation is favoured. In practice, most firms choose to use an infographic. This study aims to determine whether an infographic is a more effective and efficient form of communication than narrative-only information. Additionally, the mediating role of psychophysiological arousal is examined.
Design/methodology/approach
Using an explorative experimental design, this study uses eye-tracking technology to examine how users interact with different presentation formats for business model disclosures and how this affects the effectiveness and efficiency of the disclosures. Using pupillometry, the impacts of presentation format on arousal are also examined, in addition to the mediating effect of arousal on recall and comprehension.
Findings
Infographic presentation led to a substantial decrease in reading time coupled with moderately lower recall relative to narrative-only presentation. However, no significant difference in comprehension was observed. Additionally, infographic presentation was associated with higher arousal, but arousal was not found to mediate the relationship between presentation format and communicative effectiveness.
Originality/value
The study assists reporters and standard-setters, such as the International Accounting Standards Board and International Sustainability Standards Board, by providing qualified support for the diagrammatic representations of business models as an efficient means of communicating complex financial and non-financial information and highlighting future research opportunities.
Keywords
Acknowledgements
The authors gratefully acknowledge financial support for the project provided by the Accounting and Finance Association of Australia and New Zealand (AFAANZ) and also wish to thank Warren Maroun and the two anonymous reviewers for their insightful and constructive comments.
Citation
Steenkamp, N. and Fisher, R. (2024), "Integrated reporting business models and the role of presentation format: insight from an eye tracking study", Meditari Accountancy Research, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/MEDAR-12-2023-2250
Publisher
:Emerald Publishing Limited
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