University of Twente Student Theses


Determining the value of Integrated Reporting

Wijnhoven, J.G.W.M (2014) Determining the value of Integrated Reporting.

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Abstract:The research question in this thesis is "What is Integrated Reporting and is it a value increasing practice for DJSI-listed European companies?" The first elaborates on the question what Integrated Reporting is and why it is getting a lot of attention at the moment: its power to disclose true value. The reason that companies want to engage in Integrated Reporting is among others to communicate value to stakeholders in a more transparent way. Besides communicating with the stakeholders, Integrated Thinking helps companies make strategic choices. A distinction is made between three phases of Integrated Reporting in which companies are currently active. The empirical part of the thesis uses hypothesis tests regarding the status of Integrated Reporting at the moment, the evolvement of the phenomenon and the influence of Integrated Reporting on financial performance. Using a sample of 260 firms from Dow Jones Sustainability Index Europe, I conclude that IR is gaining popularity and that companies are working on improving the standards of their reports. However, no evidence was found for value creation. Tobin’s Q and Return On Assets measured financial performance. Despite the lack of empirical evidence for value creation, there are still reasons for companies to consider Integrated Reporting.
Item Type:Essay (Master)
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:85 business administration, organizational science
Programme:Business Administration MSc (60644)
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