IR a Qualitative Comparative Analysis on Internal Conditions leading to high disclosure levels in the case of European State-Owned Enterprises
Keywords:
literature;, investigated, size; leverage; profitabilityAbstract
The present paper aims to investigate the disclosure practices in State-Owned European organizations issuing an Integrated Reporting. Under the legitimacy theory, the paper investigates a total of 24 organizations from 2014 to 2017. The analysis covers five years and explores which internal characteristics determine organizations’ high disclosure levels in their report. The investigation is conducted through the fuzzy-set Qualitative Comparative Analysis and outlines several different combinations of solutions for the outcome to occur. The study presents a new perspective in the literature as it investigates a niche of organizations largerly unadressed by the literature and adopts a methodology dragged from other fields (e.g., marketing). The results demonstrate different circumstances under which the analyzed condition co-exist and led to high disclosure levels without excluding other conditions.
References
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Buys, P. & Van Niekerk, E. (2014). The South African financial services industry’s integrated reporting compliance with the global reporting initiative framework.
Cavicchi, C.; Oppi, C. & Vagnoni, E. (2019). On the feasibility of integrated reporting in healthcare: a context analysis starting from a management commentary. Journal of Management and Governance, 1-27
Cormier, D. & Gordon, I. M. (2001). An examination of social and environmental reporting strategies. Accounting, Auditing & Accountability Journal, 14(5), pp. 587-617.
Cuadrado‐Ballesteros, B.; Martínez‐Ferrero, J. & García‐Sánchez, I. M. (2017). Board structure to enhance social responsibility development: A qualitative comparative analysis of US companies. Corporate Social Responsibility and Environmental Management, 24(6), pp. 524-542.
Dowling, J., & Pfeffer, J. (1975). Organizational legitimacy: Social values and organizational behavior. Pacific sociological review, 18(1), pp. 122-136.
Dumay, J.; La Torre, M. & Farneti, F. (2019). Developing trust through stewardship: Implications for intellectual capital, integrated reporting, and the EU Directive 2014/95/EU. Journal of Intellectual Capital, 20(1), pp. 11-39.
Farneti, F.; Casonato, F.; Montecalvo, M. & de Villiers, C. (2019). The influence of integrated reporting and stakeholder information needs on the disclosure of social information in a state-owned enterprise. Meditari Accountancy Research.
Fiori, G.; di Donato, F. & Izzo, M. F. (2016). Exploring the effects of corporate governance on voluntary disclosure: An explanatory study on the adoption of integrated report. In Performance measurement and management control: Contemporary issues, pp. 83-108. Emerald Group Publishing Limited;
Flores-Macias, F. & Musacchio, A. (2009). The return of state-owned enterprises. Harvard International Review, 9.
Frias‐Aceituno, J. V.; Rodriguez‐Ariza, L. & Garcia‐Sanchez, I. M. (2013). The role of the board in the dissemination of integrated corporate social reporting. Corporate Social Responsibility and Environmental Management, 20(4), pp. 219-233.
Frias‐Aceituno, J. V.; Rodríguez‐Ariza, L. & Garcia‐Sánchez, I. M. (2014). Explanatory factors of integrated sustainability and financial reporting. Business strategy and the environment, 23(1), pp. 56-72.
García‐Sánchez, I. M. & Noguera‐Gámez, L. (2018). Institutional investor protection pressures versus firm incentives in the disclosure of integrated reporting. Australian Accounting Review, 28(2), pp. 199-219.
García‐Sánchez, I. M.; Martínez‐Ferrero, J. & Garcia‐Benau, M. A. (2019). Integrated reporting: The mediating role of the board of directors and investor protection on managerial discretion in munificent environments. Corporate Social Responsibility and Environmental Management, 26(1), pp. 29-45.
Gerwanski, J.; Kordsachia, O. & Velte, P. (2019). Determinants of materiality disclosure quality in integrated reporting: Empirical evidence from an international setting. Business Strategy and the Environment.
Goldeng, E.; Grünfeld, L. A. & Benito, G. R. (2008). The performance differential between private and state-owned enterprises: The roles of ownership, management and market structure. Journal of Management Studies, 45(7), pp. 1244-1273;
Greckhamer, T.; Furnari, S.; Fiss, P. C. & Aguilera, R. V. (2018). Studying configurations with qualitative comparative analysis: Best practices in strategy and organization research. Strategic Organization, 16(4), pp. 482-495;
Greiling, D.; Traxler, A. A. & Stötzer, S. (2015). Sustainability reporting in the Austrian, German and Swiss public sector. International Journal of Public Sector Management.
Grossi, G.; Papenfuß, U. & Tremblay, M. S. (2015). Corporate governance and accountability of state-owned enterprises: relevance for science and society and interdisciplinary research perspectives. International Journal of Public Sector Management, 28(4/5), pp. 274-285.
Guthrie, J. & Parker, L. D. (1989). Corporate social reporting: a rebuttal of legitimacy theory. Accounting and business research, 19(76), pp. 343-352.
Guthrie, J.; Manes-Rossi, F. & Orelli, R. L. (2017). Integrated reporting and integrated thinking in Italian public sector organizations. Meditari Accountancy Research, 25(4), pp. 553-573;
Haji, A. A. & Anifowose, M. (2017). Initial trends in corporate disclosures following the introduction of integrated reporting practice in South Africa. Journal of Intellectual Capital.
Haji, A. A., & Hossain, D. M. (2016). Exploring the implications of integrated reporting on organizational reporting practice: Evidence from highly regarded integrated reporters. Qualitative Research in Accounting & Management.
Iredele, O. O. (2019). Examining the association between quality of integrated reports and corporate characteristics. Heliyon, 5(7), e01932.
Kılıç, M. & Kuzey, C. (2018a). Assessing current company reports according to the IIRC integrated reporting framework. Meditari Accountancy Research, 26(2), pp. 305-333.
Kılıç, M. & Kuzey, C. (2018b). Determinants of forward-looking disclosures in integrated reporting. Managerial Auditing Journal, 33(1), pp. 115-144.
KPMG (2015). The KPMG Survey of Corporate Responsibility Reporting 2015. https://home.kpmg.com/xx/en/home/insights/2015/11/kpmg-international-survey-of-corporate-responsibility-reporting-2015.html [Accessed 17 May 2021].
Krippendorff, K. (1980). Validity in content analysis.
Krippendorff, K. (1989). Content analysis. In E. Barnouw, G. Gerbner, W. Schramm, T. L. Worth, & L. Gross (Eds.), International encyclopedia of communication Vol. 1, pp. 403-407. New York, NY: Oxford University Press. Retrieved from http://repository.upenn.edu/asc_papers/226
Lai, A., Melloni, G., & Stacchezzini, R. (2016). Corporate sustainable development: is ‘integrated reporting’a legitimation strategy?. Business Strategy and the Environment, 25(3), pp. 165-177.
Lindblom, C. K. (1983). The concept of organizational legitimacy and its implications for corporate social responsibility disclosure. American Accounting Association Public Interest Section, pp. 220-221.
Lopes, A. I. & Coelho, A. M. (2018). Engaged in Integrated Reporting? Evidence across multiple organizations. European Business Review, 30(4), pp. 398-426.
Luke, B. (2010). Examining accountability dimensions in state‐owned enterprises. Financial Accountability & Management, 26(2), pp. 134-162.
Manes-Rossi, F.; Tiron-Tudor, A.; Nicolò, G. & Zanellato, G. (2018). Ensuring more sustainable reporting in Europe using non-financial disclosure—De facto and de jure evidence. Sustainability, 10(4), 1162.Melloni, G. (2015). Intellectual capital disclosure in integrated reporting: an impression management analysis. Journal of Intellectual Capital, 16(3), pp. 661-680.
Montecalvo, M.; Farneti, F. & De Villiers, C. (2018). The potential of integrated reporting to enhance sustainability reporting in the public sector. Public Money & Management, 38(5), pp. 365-374.
Nieto Alemán, P. A.; Roig-Tierno, N.; Mas-Verdú, F. & García Álvarez-Coque, J. M. (2018). Multidimensional paths to regional poverty: a Fuzzy-set qualitative comparative analysis of Colombian departments. Journal of Human Development and Capabilities, 19(4), pp. 499-520.
OECD (2015). OECD Guidelines on Corporate Governance of State-Owned Enterprises, 2015 Edition. OECD Publishing, Paris, https://doi.org/10.1787/9789264244160-en.
Pache, A. C. & Santos, F. (2013). Inside the hybrid organization: Selective coupling as a response to competing institutional logics. Academy of management journal, 56(4), pp. 972-1001;
Patten, D. M. (1992). Intra-industry environmental disclosures in response to the Alaskan oil spill: a note on legitimacy theory. Accounting, organizations and society, 17(5), pp. 471-475.
Pistoni, A.; Songini, L. & Bavagnoli, F. (2018). Integrated reporting quality: an empirical analysis. Corporate Social Responsibility and Environmental Management, 25(4), pp. 489-507.
Pozzoli, M., & Gesuele, B. (2016). From theory to practice: First adoption of integrated reporting by the Italian public utilities. In Strengthening information and control systems (pp. 121-132). Springer, Cham;
Ragin, C. C. (2009). Redesigning social inquiry: Fuzzy sets and beyond. University of Chicago Press.
Reimsbach, D.; Hahn, R. & Gürtürk, A. (2018). Integrated reporting and assurance of sustainability information: An experimental study on professional investors’ information processing. European Accounting Review, 27(3), pp. 559-581;
Rimmel, G. (2019). Human Capital Disclosures in Swedish State-Owned Enterprises—A Comparison of Integrated Reporting Versus Traditional Reporting. Challenges in Managing Sustainable Business, pp. 55-75. Palgrave Macmillan, Cham;
Rivera‐Arrubla, Y. A. & Zorio‐Grima, A. (2016). Integrated reporting, connectivity, and social media. Psychology & Marketing, 33(12), pp. 1159-1165;
Rivera-Arrubla, Y. A.; Zorio-Grima, A., & García-Benau, M. A. (2017). Integrated reports: disclosure level and explanatory factors. Social Responsibility Journal, 13(1), pp. 155-176.
Schneider, C. Q. & Wagemann, C. (2012). Set-theoretic methods for the social sciences: A guide to qualitative comparative analysis. Cambridge University Press.
Setia, N.; Abhayawansa, S.; Joshi, M. & Huynh, A. V. (2015). Integrated reporting in South Africa: some initial evidence. Sustainability Accounting, Management and Policy Journal, 6(3), pp. 397-424.
Sofian, I. & Dumitru, M. (2017). The compliance of the integrated reports issued by European financial companies with the international integrated reporting framework. Sustainability, 9(8), p. 1319.
Suchman, M. C. (1995). Managing legitimacy: Strategic and institutional approaches. Academy of management review, 20(3), pp. 571-610.
Suttipun, M. & Bomlai, A. (2019). The Relationship Between Corporate Governance And Integrated Reporting: Thai Evidence. International Journal of Business & Society, 20(1).
Wachira, M. M.; Berndt, T. & Romero, C. M. (2019). The adoption of international sustainability and integrated reporting guidelines within a mandatory reporting framework: lessons from South Africa. Social Responsibility Journal.
Woodside, A. G. (2013). Moving beyond multiple regression analysis to algorithms: Calling for adoption of a paradigm shift from symmetric to asymmetric thinking in data analysis and crafting theory.
Zhou, S.; Simnett, R. & Green, W. (2017). Does integrated reporting matter to the capital market?. Abacus, 53(1), pp. 94-132.
Buys, P. & Van Niekerk, E. (2014). The South African financial services industry’s integrated reporting compliance with the global reporting initiative framework.
Cavicchi, C.; Oppi, C. & Vagnoni, E. (2019). On the feasibility of integrated reporting in healthcare: a context analysis starting from a management commentary. Journal of Management and Governance, 1-27
Cormier, D. & Gordon, I. M. (2001). An examination of social and environmental reporting strategies. Accounting, Auditing & Accountability Journal, 14(5), pp. 587-617.
Cuadrado‐Ballesteros, B.; Martínez‐Ferrero, J. & García‐Sánchez, I. M. (2017). Board structure to enhance social responsibility development: A qualitative comparative analysis of US companies. Corporate Social Responsibility and Environmental Management, 24(6), pp. 524-542.
Dowling, J., & Pfeffer, J. (1975). Organizational legitimacy: Social values and organizational behavior. Pacific sociological review, 18(1), pp. 122-136.
Dumay, J.; La Torre, M. & Farneti, F. (2019). Developing trust through stewardship: Implications for intellectual capital, integrated reporting, and the EU Directive 2014/95/EU. Journal of Intellectual Capital, 20(1), pp. 11-39.
Farneti, F.; Casonato, F.; Montecalvo, M. & de Villiers, C. (2019). The influence of integrated reporting and stakeholder information needs on the disclosure of social information in a state-owned enterprise. Meditari Accountancy Research.
Fiori, G.; di Donato, F. & Izzo, M. F. (2016). Exploring the effects of corporate governance on voluntary disclosure: An explanatory study on the adoption of integrated report. In Performance measurement and management control: Contemporary issues, pp. 83-108. Emerald Group Publishing Limited;
Flores-Macias, F. & Musacchio, A. (2009). The return of state-owned enterprises. Harvard International Review, 9.
Frias‐Aceituno, J. V.; Rodriguez‐Ariza, L. & Garcia‐Sanchez, I. M. (2013). The role of the board in the dissemination of integrated corporate social reporting. Corporate Social Responsibility and Environmental Management, 20(4), pp. 219-233.
Frias‐Aceituno, J. V.; Rodríguez‐Ariza, L. & Garcia‐Sánchez, I. M. (2014). Explanatory factors of integrated sustainability and financial reporting. Business strategy and the environment, 23(1), pp. 56-72.
García‐Sánchez, I. M. & Noguera‐Gámez, L. (2018). Institutional investor protection pressures versus firm incentives in the disclosure of integrated reporting. Australian Accounting Review, 28(2), pp. 199-219.
García‐Sánchez, I. M.; Martínez‐Ferrero, J. & Garcia‐Benau, M. A. (2019). Integrated reporting: The mediating role of the board of directors and investor protection on managerial discretion in munificent environments. Corporate Social Responsibility and Environmental Management, 26(1), pp. 29-45.
Gerwanski, J.; Kordsachia, O. & Velte, P. (2019). Determinants of materiality disclosure quality in integrated reporting: Empirical evidence from an international setting. Business Strategy and the Environment.
Goldeng, E.; Grünfeld, L. A. & Benito, G. R. (2008). The performance differential between private and state-owned enterprises: The roles of ownership, management and market structure. Journal of Management Studies, 45(7), pp. 1244-1273;
Greckhamer, T.; Furnari, S.; Fiss, P. C. & Aguilera, R. V. (2018). Studying configurations with qualitative comparative analysis: Best practices in strategy and organization research. Strategic Organization, 16(4), pp. 482-495;
Greiling, D.; Traxler, A. A. & Stötzer, S. (2015). Sustainability reporting in the Austrian, German and Swiss public sector. International Journal of Public Sector Management.
Grossi, G.; Papenfuß, U. & Tremblay, M. S. (2015). Corporate governance and accountability of state-owned enterprises: relevance for science and society and interdisciplinary research perspectives. International Journal of Public Sector Management, 28(4/5), pp. 274-285.
Guthrie, J. & Parker, L. D. (1989). Corporate social reporting: a rebuttal of legitimacy theory. Accounting and business research, 19(76), pp. 343-352.
Guthrie, J.; Manes-Rossi, F. & Orelli, R. L. (2017). Integrated reporting and integrated thinking in Italian public sector organizations. Meditari Accountancy Research, 25(4), pp. 553-573;
Haji, A. A. & Anifowose, M. (2017). Initial trends in corporate disclosures following the introduction of integrated reporting practice in South Africa. Journal of Intellectual Capital.
Haji, A. A., & Hossain, D. M. (2016). Exploring the implications of integrated reporting on organizational reporting practice: Evidence from highly regarded integrated reporters. Qualitative Research in Accounting & Management.
Iredele, O. O. (2019). Examining the association between quality of integrated reports and corporate characteristics. Heliyon, 5(7), e01932.
Kılıç, M. & Kuzey, C. (2018a). Assessing current company reports according to the IIRC integrated reporting framework. Meditari Accountancy Research, 26(2), pp. 305-333.
Kılıç, M. & Kuzey, C. (2018b). Determinants of forward-looking disclosures in integrated reporting. Managerial Auditing Journal, 33(1), pp. 115-144.
KPMG (2015). The KPMG Survey of Corporate Responsibility Reporting 2015. https://home.kpmg.com/xx/en/home/insights/2015/11/kpmg-international-survey-of-corporate-responsibility-reporting-2015.html [Accessed 17 May 2021].
Krippendorff, K. (1980). Validity in content analysis.
Krippendorff, K. (1989). Content analysis. In E. Barnouw, G. Gerbner, W. Schramm, T. L. Worth, & L. Gross (Eds.), International encyclopedia of communication Vol. 1, pp. 403-407. New York, NY: Oxford University Press. Retrieved from http://repository.upenn.edu/asc_papers/226
Lai, A., Melloni, G., & Stacchezzini, R. (2016). Corporate sustainable development: is ‘integrated reporting’a legitimation strategy?. Business Strategy and the Environment, 25(3), pp. 165-177.
Lindblom, C. K. (1983). The concept of organizational legitimacy and its implications for corporate social responsibility disclosure. American Accounting Association Public Interest Section, pp. 220-221.
Lopes, A. I. & Coelho, A. M. (2018). Engaged in Integrated Reporting? Evidence across multiple organizations. European Business Review, 30(4), pp. 398-426.
Luke, B. (2010). Examining accountability dimensions in state‐owned enterprises. Financial Accountability & Management, 26(2), pp. 134-162.
Manes-Rossi, F.; Tiron-Tudor, A.; Nicolò, G. & Zanellato, G. (2018). Ensuring more sustainable reporting in Europe using non-financial disclosure—De facto and de jure evidence. Sustainability, 10(4), 1162.Melloni, G. (2015). Intellectual capital disclosure in integrated reporting: an impression management analysis. Journal of Intellectual Capital, 16(3), pp. 661-680.
Montecalvo, M.; Farneti, F. & De Villiers, C. (2018). The potential of integrated reporting to enhance sustainability reporting in the public sector. Public Money & Management, 38(5), pp. 365-374.
Nieto Alemán, P. A.; Roig-Tierno, N.; Mas-Verdú, F. & García Álvarez-Coque, J. M. (2018). Multidimensional paths to regional poverty: a Fuzzy-set qualitative comparative analysis of Colombian departments. Journal of Human Development and Capabilities, 19(4), pp. 499-520.
OECD (2015). OECD Guidelines on Corporate Governance of State-Owned Enterprises, 2015 Edition. OECD Publishing, Paris, https://doi.org/10.1787/9789264244160-en.
Pache, A. C. & Santos, F. (2013). Inside the hybrid organization: Selective coupling as a response to competing institutional logics. Academy of management journal, 56(4), pp. 972-1001;
Patten, D. M. (1992). Intra-industry environmental disclosures in response to the Alaskan oil spill: a note on legitimacy theory. Accounting, organizations and society, 17(5), pp. 471-475.
Pistoni, A.; Songini, L. & Bavagnoli, F. (2018). Integrated reporting quality: an empirical analysis. Corporate Social Responsibility and Environmental Management, 25(4), pp. 489-507.
Pozzoli, M., & Gesuele, B. (2016). From theory to practice: First adoption of integrated reporting by the Italian public utilities. In Strengthening information and control systems (pp. 121-132). Springer, Cham;
Ragin, C. C. (2009). Redesigning social inquiry: Fuzzy sets and beyond. University of Chicago Press.
Reimsbach, D.; Hahn, R. & Gürtürk, A. (2018). Integrated reporting and assurance of sustainability information: An experimental study on professional investors’ information processing. European Accounting Review, 27(3), pp. 559-581;
Rimmel, G. (2019). Human Capital Disclosures in Swedish State-Owned Enterprises—A Comparison of Integrated Reporting Versus Traditional Reporting. Challenges in Managing Sustainable Business, pp. 55-75. Palgrave Macmillan, Cham;
Rivera‐Arrubla, Y. A. & Zorio‐Grima, A. (2016). Integrated reporting, connectivity, and social media. Psychology & Marketing, 33(12), pp. 1159-1165;
Rivera-Arrubla, Y. A.; Zorio-Grima, A., & García-Benau, M. A. (2017). Integrated reports: disclosure level and explanatory factors. Social Responsibility Journal, 13(1), pp. 155-176.
Schneider, C. Q. & Wagemann, C. (2012). Set-theoretic methods for the social sciences: A guide to qualitative comparative analysis. Cambridge University Press.
Setia, N.; Abhayawansa, S.; Joshi, M. & Huynh, A. V. (2015). Integrated reporting in South Africa: some initial evidence. Sustainability Accounting, Management and Policy Journal, 6(3), pp. 397-424.
Sofian, I. & Dumitru, M. (2017). The compliance of the integrated reports issued by European financial companies with the international integrated reporting framework. Sustainability, 9(8), p. 1319.
Suchman, M. C. (1995). Managing legitimacy: Strategic and institutional approaches. Academy of management review, 20(3), pp. 571-610.
Suttipun, M. & Bomlai, A. (2019). The Relationship Between Corporate Governance And Integrated Reporting: Thai Evidence. International Journal of Business & Society, 20(1).
Wachira, M. M.; Berndt, T. & Romero, C. M. (2019). The adoption of international sustainability and integrated reporting guidelines within a mandatory reporting framework: lessons from South Africa. Social Responsibility Journal.
Woodside, A. G. (2013). Moving beyond multiple regression analysis to algorithms: Calling for adoption of a paradigm shift from symmetric to asymmetric thinking in data analysis and crafting theory.
Zhou, S.; Simnett, R. & Green, W. (2017). Does integrated reporting matter to the capital market?. Abacus, 53(1), pp. 94-132.
Published
2022-02-02
How to Cite
Gianluca, Z. . (2022). IR a Qualitative Comparative Analysis on Internal Conditions leading to high disclosure levels in the case of European State-Owned Enterprises: Array. The Journal of Accounting and Management, 11(3). Retrieved from https://dj.univ-danubius.ro/index.php/JAM/article/view/1569
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