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The authors examine the effect of greenhouse gas (ghg) assurance on cost of debt, and the effect of board gender diversity on cost of debt, for an international sample of listed companies.

Utilizing firm-level data and a quantile regression approach, this study examines the effects of greenhouse gas assurance and board diversity on cost of debt by employing an international sample of firms during 2015–2021.

The authors find that in firms with a relatively low cost of debt the external assurance of greenhouse gas emissions and gender diversity could significantly contribute to a reduction of cost of debt. Furthermore, other measures of board diversity that are linked with independent directors and skilled directors seem to contribute to an increase of firms' cost of debt in the lower end of distribution. Drawing from the agency theory, the authors showcase the fact that ghg assurance reduces information asymmetry and therefore agency costs such as borrowing costs and signals to the stakeholders a long-term commitment to excellence.

This study is the first that provides insights on the relationship between ghg assurance, board diversity and cost of debt.

This study aims to examine whether the adoption of the International Integrated Reporting Council’s Integrated Reporting Framework (IIRC Framework) influences the extent of forward-looking disclosures provided by reporters.

This study captures forward-looking disclosures of Australian and New Zealand-based reporters by analysing integrated and annual reports over a period of 10 years from 2010 to 2019 using a machine learning algorithm. This study uses signalling theory to frame the analysis.

This study finds that the adoption of the IIRC Framework has a significant positive impact on the extent of forward-looking disclosures provided by reporting entities. The primary evidence suggests that while listing status alone negatively influences the extent of forward-looking disclosures, the additional analysis reveals that the acceptance of the IIRC Framework by listed entities is positively associated with an increase in forward-looking information. These results remain valid when subjected to a variety of robustness (alternative variables and country fixed effect) and endogeneity (system generalised method of moments and entropy balancing estimations) tests.

The findings have practical implications as regulatory agencies (including stock exchanges and standard setters), seeking to promote greater forward-looking disclosures, may want to encourage the adoption of the IIRC Framework.

The IIRC’s Framework promotes greater forward-looking disclosures benefiting stakeholders who gain a better understanding of the reporters’ future risks and opportunities (including social, economic and environmental risks) and how these are being managed/addressed.

This study provides novel evidence by highlighting the role played by the IIRC Framework in promoting forward-looking disclosures.

The effects of integrated reporting quality (IRQ) have been debated in increasing empirical studies. Several IRQ measures, different theoretical approaches and multiple contexts have been adopted and investigated, leading to mixed results. By using the meta-analytic technique, this study aims to contribute to the accounting literature, reconciling the conflicting results on the effects of IRQ and providing objective conclusions to complement narrative literature reviews.

A sample of 45 empirical papers from 2013 to 2022, with 653 effect sizes, was used to assess the effects associated with IRQ. The papers were clustered into five groups (market reaction, financial performance, cost of capital, financial analysts’ properties and managerial decisions) based on the different consequences of IRQ investigated in the primary studies. A random-effects meta-regression model was used to explore all sources of heterogeneity together.

The meta-regression results confirm that IRQ positively influences firms’ market valuation and financial performance and hampers opportunistic managerial behaviour by improving corporate transparency, mitigating information asymmetry and encouraging accountability. Moreover, differences in the study characteristics affect the strength of the relationship object of interest.

Through meta-analysis, this study provides a broader overview of the effects of IRQ by enhancing the generalisability of the findings. The results also pave the way for additional evidence on the outcome variables affected by the quality of integrated disclosure.

This research investigates the feasibility, benefits and challenges of environmental sustainability reporting by Small- and Medium-Sized Enterprises (SMEs).

The authors develop an abridged SME environmental sustainability reporting framework based on the environmental aspects of the Global Reporting Initiative (GRI) Standards for Sustainability Reporting. The authors collect the views of 203 SME accounting practitioners on our proposed reporting framework using a survey questionnaire.

The authors find that the greatest perceived benefit for firms adopting environmental sustainability reporting is that it leads to an improvement in company image. Lack of knowledge, resources and data capturing tools impede implementation of environmental sustainability reporting for both SMEs and accounting practitioners. While SMEs are not yet required to implement environmental sustainability reporting, the research discusses implications for policy makers and practitioners for adopting environmental sustainability reporting in the SME context.

The main limitation of this study is that environmental sustainability reporting for SMEs is in its infancy. A longitudinal survey, or re-examining this survey over time, could be beneficial to assess the long-term benefits and costs of implementing sustainability reporting.

The findings of this study have practical implications for the future development of SME environmental sustainability reporting in the EU and for regulators considering sustainability reporting regulations with a specific focus on SMEs.

The study reconstructs the GRI environmental guidelines into a framework for SMEs and provides empirical evidence on the accountant’s sustainability reporting role.

This study aims to investigate the moderating effect of external financing needs on the relationship between the disclosure level of integrated reporting (IR) and firm value using evidence from Egypt.

This study uses a panel regression analysis for a matched sample of 50 companies listed on the Egyptian Stock Exchange (EGX), specifically from EGX100. The sample covers four years (2017–2020). The current study uses content analysis to measure IR and Tobin’s Q as a proxy for firm value.

The findings reveal a significant positive relationship between the disclosure level of IR and firm value. In addition, the authors find that external financing needs moderate the relationship between IR and firm value. It is concluded that the higher the disclosure level of IR content, the higher the firm’s value, and that this relationship strengthens in firms with high needs for external financing.

Several practical implications can be derived from the results of the current study. Policymakers and regulators can impose mandatory requirements for IR in Egypt. It also opens new insights for board members, managers, analysts and auditors in forming financing decisions based on annual reports.

The present study has a novel insight from a developing country and significant contributions to the extant literature. The study provides empirical evidence from an emerging economy and an insight into how external financing can be used for firms with different levels of IR. It also provides a comprehensive disclosure index to estimate the level of IR.

The purpose of this paper is to analyze the literature related to integrated reporting (IR) to develop insight into how IR research is developing and highlight the gaps in the existing research. This can provide a framework for asking more specific and directed research questions.

The study was based on a systematic literature review (SLR) of 102 articles published in eight journals between 2013 and 2022.

The academic literature has not yet covered all topics and fields of the IR. It highlights numerous areas where further robust academic research is required to guide developments in policy and practice. Scholars prefer the qualitative research approach. The majority of papers are concerned with IIRC framework and theories of legitimacy, institutional, agency, stakeholders and diffusion of innovations theory. Most studies use the context of South Africa, Australia and some European nations, and there has been a lack of comprehensive country studies.

A key limitation is that it is based on eight communication channels, but it provides opportunities for considerable further developments. Although the SLR itself ensures the objectivity of the present study, limitations can be found in the selection of papers and journals, as well as its limited focus on English-language literature. Current study has divided the IR research into six focus areas. Future study should also divide IR into additional categories, such as big data and IR, materiality disclosure in IR quality studies and assurance services and IR.

This paper outlined a future research agenda for how <IR> research could be improved. This research agenda can help researchers and academics to discover under-investigated topics and focus on developments of IR in different economies. It also might help regulators to develop some policies, models, strategies and frameworks for its future implementation. For managers, adopting and implementing IR in a company is likely to improve management quality by bringing an integrated perspective that is not solely focused on financial objectives. However, it also focuses on sustainability issues by integrating sustainability into the organization’s strategy and business model.

This research provides a better understanding of integrated report topics. This opens the debate for future research. By increasing IR practices, the transparency and accountability enjoyed by companies will increase, in addition to improving the organization’s image in society by providing stakeholders needs, focusing on sustainability issues, reducing the negative impacts of corporate activities on the environment and improving the life quality and well-being of society.

The paper provides the growing number of academic researchers related to IR with a foundation and agenda upon which they can build their research.

Cultural friction (CF) was introduced by researchers to overcome the issues and challenges of cultural distance measurement in the context of cross-border mergers and acquisitions (CBMAs). However, this construct has proved itself to be problematic to operationalize. To address this challenge, this paper aims to elaborate on a CF measurement instrument based on individual perceptions in CBMAs. This study used a microfoundation approach to measure CF, relying on managers’ interactions in CBMA settings.

To develop and validate a CF measurement in the context of CBMAs, this study followed a classical procedure including items development, lab tests and one field-study and an assessment of the construct validity.

The final instrument developed for measuring CF is composed of six critical incidents with three associated items each. The factor analysis revealed that the scale used in the field-test measures two factors of CF: internal and external. Reliability and discriminant validity are tested, demonstrating a good discriminant validity of “external” CF. The final measurement can be used as a valid and reliable scale in further studies to assess CF in the context of CBMAs.

This paper’s originality lies in developing and validating a CF measurement instrument that does not rely on cultural distance frameworks. The resulting scale shows the interest in considering micro-individual perceptions – the microfoundation level – for analyzing an organizational phenomenon as culture in CBMA contexts. Using a micro-founded approach, this study offers promising avenues for researchers who wish to study cultural interactions in international settings.

This study aims to examine the determinants and consequences of integrated reporting (IR) disclosures of listed non-financial firms in an emerging economy.

This study uses data from 39 listed non-financial firms that had adopted IR disclosure framework in Sri Lanka for the period from 2011 to 2018. Firm size, growth opportunity, profitability and firm age are considered significant determinants of IR disclosure, while their consequences are measured in terms of share price, Tobin’s Q, return on assets and return on equity. The authors used the results of the correlation and panel regression analyses to draw this study’s conclusions.

This study finds that firm size and age are the significant determinants of IR disclosure, which is consistent with this study’s expectations. Considering the consequences of IR disclosure, only share price and Tobin’s Q show significant results as per the panel regression analyses.

The findings of this study would be useful in the decision-making processes of existing and prospective investors, regulators, policymakers and society at large. Further, the findings of this study communicate the benefits of this new reporting paradigm in shaping their disclosures in the annual corporate reporting process.

Although existing studies attempted to examine the determinants of IR disclosure and its consequences as isolated studies, this study provides new insights by merging these two aspects into a single study and consider several determinants and consequences as well.

This study aims to investigate the relationship between corporate sustainable development goals (SDGs) disclosure and analyst forecast quality.

The study focuses on a sample of 95 Italian-listed companies preparing the mandatory non-financial declaration (NFD) according to the Global Reporting Initiative (GRI) standards over a five-year period (2017–2021), corresponding to an unbalanced sample of 438 observations. Analyst forecast quality was proxied by earnings forecast accuracy (FA) and earnings forecast dispersion (FD), built on data retrieved from the Refinitiv database. A manual content analysis was performed on NFDs to derive an SDG disclosure score (SDGD) for each sampled company.

This study provides empirical evidence suggesting that voluntary SDG disclosure matters to the capital market in that it helps enhance the information environment of companies, evidenced by improved analyst forecast quality. In particular, this study highlighted that SDG disclosure positively influences analyst FA while negatively affecting analyst FD.

This study focuses on the Italian context, which has idiosyncratic characteristics regarding the structure of the financial market, the composition of corporate ownership and experience in non-financial reporting practices.

This study indicates to corporate managers that following GRI standards may represent the right way to better integrate SDG disclosure in corporate non-financial reports and increase the relevance of such information for investors and other capital market participants.

To the best of the authors’ knowledge, this is the first study that empirically examines the association between SDG disclosure and analyst forecast quality.

This study aims to investigate the relationship between carbon emission disclosure and earnings management within Indonesian firms. The authors use the stakeholder theory and agency theory frameworks to explain this relationship.

Panel data of Indonesian listed firms between 2016 and 2021 are used in this study. Data are analysed using fixed effects with robust standard errors.

Firms disclosing carbon emission-related information exhibit less absolute discretionary accruals. This finding implies that these firms are less likely to engage in unethical financial reporting practices, such as earnings management. This finding is also confirmed through the robustness check and endogeneity tests.

The findings of this study can be used when formulating policy initiatives and regulations to promote carbon emission disclosure practices within Indonesian firms.

To the best of the authors’ knowledge, this study is the first to examine the effect of carbon emission disclosure in sustainability reports on earnings management amid the sustainability reporting requirement period. It provides empirical evidence that carbon emission disclosure is considered an ethical practice in an emerging country.