Integrated reporting and value creation process in Australian listed firms : understanding the benefits, challenges, and the role of multi-dimensional performance measures

  • Asma Shabbir

    Student thesis: Professional Doctorate


    The thesis aims to achieve three objectives: a) to understand the current status of IR implementation in Australia, b) to explore benefits and challenges to integrated reporting (IR) implementation, c) to understand the impact of IR implementation on value creation and the mediating role of multi-dimensional performance measures in the relationship between IR implementation and value creation. To address the thesis aims, data were collected in two phases. First, secondary data were collected from published annual reports and sustainability reports of ASX 300 index listed firms for the period of seven years (2014-2020) and data were coded applying a content analysis technique. Second, in-depth interviews of seven respondents were carried out to gain a deeper insight into the issues under investigation. Quantitative data were analysed using descriptive statistics and applying multivariate analysis techniques using PLS-SEM modelling. Qualitative data were analysed in the light of research questions and issues identified from interviews.
    The key findings of the thesis are: a) firms report more IR principles than IR content elements. Most firms report on 17-24 items of a possible 33 derived from the IR principles, but report on 10-18 items of a possible 35 derived from the IR content elements. Among the sample firms, no firms have implemented IR fully; b) IR principles and content elements positively impact value creation for shareholders, employees, customers, suppliers and communities; c) Multidimensional performance measures (MPM) positively influence the stakeholders’ value, but not suppliers’ value. Also, MPM mediates the relationship between IR content elements and shareholders’ value. The interview findings reveal that while the decision-makers of Australian firms believe IR is beneficial to their business, and for multiple stakeholders, respondents are concerned about its complexity of implementation, the lack of training and expertise for IR implementation, connectivity between the key indicators, inability to combat existing systems and technologies, lack of employee motivation, and lack of adaptation for integration. This study contributes to the existing IR literature in a number of ways. Firstly, the thesis examines IR principles, IR content elements in line with IIRC guidelines, and value creation over the short, medium, and long-term from multiple stakeholders’ perspectives. Understanding the full aspects of IR principles and content has been novel in the literature. Likewise, the thesis uses multi-dimensional performance measures in terms of both financial and non-financial perspectives and provides empirical evidence for the role of MPM in the relationship between them and value creation, which is also new in the literature. Lastly, this research employs a large sample of data from annual and sustainability reports of ASX300 index listed firms in the Australian context over the seven years from 2014 to 2020. By providing empirical evidence in the Australian context, the thesis provides better understanding of the progress of IR over time and the factors responsible for facilitating (or deterring) IR implementation.
    Date of Award2022
    Original languageEnglish
    SupervisorHabib Khan (Supervisor), Abu Mollik (Supervisor) & Harun Harun (Supervisor)

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