Determinants of interconnected corporate information. Evidence of the connectivity principle in integrated reporting

This paper aims to deepen knowledge of the principle of connectivity between financial and non-financial information defined in the Integrated Reporting (IR) conceptual framework. We have created a multidimensional connectivity index that is used to assess the level of connectivity in reporting. The...

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Main Authors: Pilar Tirado-Valencia, Marta de Vicente-Lama, Magdalena Cordobés-Madueño, Mercedes Ruiz-Lozano
Format: Article
Language:Spanish
Published: Elsevier 2024-09-01
Series:European Research on Management and Business Economics
Subjects:
Online Access:http://www.sciencedirect.com/science/article/pii/S2444883424000159
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author Pilar Tirado-Valencia
Marta de Vicente-Lama
Magdalena Cordobés-Madueño
Mercedes Ruiz-Lozano
author_facet Pilar Tirado-Valencia
Marta de Vicente-Lama
Magdalena Cordobés-Madueño
Mercedes Ruiz-Lozano
author_sort Pilar Tirado-Valencia
collection DOAJ
description This paper aims to deepen knowledge of the principle of connectivity between financial and non-financial information defined in the Integrated Reporting (IR) conceptual framework. We have created a multidimensional connectivity index that is used to assess the level of connectivity in reporting. The results indicate that the levels achieved are low, suggesting that firms publishing their reports under the IR conceptual framework have not fully internalised this principle. Our results also show that coercive and normative institutional factors such as the mandatory nature of IR or the legal system, drive connectivity. Connectivity is also generally influenced by internal managerial decisions mainly related to the report's length and assurance. These findings may have practical implications for regulators and standard-setters, who should explicitly incorporate this principle into their pronouncements, providing guidelines to facilitate its practical implementation, and for preparers who should enhance the interactivity of reports.
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issn 2444-8834
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publishDate 2024-09-01
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series European Research on Management and Business Economics
spelling doaj-art-b631a3caf20249a2b824fb2419e7bed22025-08-20T02:07:35ZspaElsevierEuropean Research on Management and Business Economics2444-88342024-09-0130310025510.1016/j.iedeen.2024.100255Determinants of interconnected corporate information. Evidence of the connectivity principle in integrated reportingPilar Tirado-Valencia0Marta de Vicente-Lama1Magdalena Cordobés-Madueño2Mercedes Ruiz-Lozano3Department of Financial Economics and Accounting, Universidad Loyola Andalucía, Av. de las Universidades, 2 41704 Dos Hermanas, Sevilla, SpainCorresponding author.; Department of Financial Economics and Accounting, Universidad Loyola Andalucía, Av. de las Universidades, 2 41704 Dos Hermanas, Sevilla, SpainDepartment of Financial Economics and Accounting, Universidad Loyola Andalucía, Av. de las Universidades, 2 41704 Dos Hermanas, Sevilla, SpainDepartment of Financial Economics and Accounting, Universidad Loyola Andalucía, Av. de las Universidades, 2 41704 Dos Hermanas, Sevilla, SpainThis paper aims to deepen knowledge of the principle of connectivity between financial and non-financial information defined in the Integrated Reporting (IR) conceptual framework. We have created a multidimensional connectivity index that is used to assess the level of connectivity in reporting. The results indicate that the levels achieved are low, suggesting that firms publishing their reports under the IR conceptual framework have not fully internalised this principle. Our results also show that coercive and normative institutional factors such as the mandatory nature of IR or the legal system, drive connectivity. Connectivity is also generally influenced by internal managerial decisions mainly related to the report's length and assurance. These findings may have practical implications for regulators and standard-setters, who should explicitly incorporate this principle into their pronouncements, providing guidelines to facilitate its practical implementation, and for preparers who should enhance the interactivity of reports.http://www.sciencedirect.com/science/article/pii/S2444883424000159G39M14M41
spellingShingle Pilar Tirado-Valencia
Marta de Vicente-Lama
Magdalena Cordobés-Madueño
Mercedes Ruiz-Lozano
Determinants of interconnected corporate information. Evidence of the connectivity principle in integrated reporting
European Research on Management and Business Economics
G39
M14
M41
title Determinants of interconnected corporate information. Evidence of the connectivity principle in integrated reporting
title_full Determinants of interconnected corporate information. Evidence of the connectivity principle in integrated reporting
title_fullStr Determinants of interconnected corporate information. Evidence of the connectivity principle in integrated reporting
title_full_unstemmed Determinants of interconnected corporate information. Evidence of the connectivity principle in integrated reporting
title_short Determinants of interconnected corporate information. Evidence of the connectivity principle in integrated reporting
title_sort determinants of interconnected corporate information evidence of the connectivity principle in integrated reporting
topic G39
M14
M41
url http://www.sciencedirect.com/science/article/pii/S2444883424000159
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AT magdalenacordobesmadueno determinantsofinterconnectedcorporateinformationevidenceoftheconnectivityprincipleinintegratedreporting
AT mercedesruizlozano determinantsofinterconnectedcorporateinformationevidenceoftheconnectivityprincipleinintegratedreporting