It is currently often argued that financial reporting fails to give a complete picture of the firm and is too short-term oriented. Integrated reporting is considered a concise communication about how an organization’s strategy, governance, performance and prospects, in the context of its external environment, lead to the creation of value over the short, medium and long term.
Up till now there has been little academic evidence on the value relevance of integrated reporting. Therefore this PhD project aims to examine the effect of integrated reporting on firms and their shareholders and stakeholders’ judgment and decision-making behaviour.
The results will have implications for firms examining the benefits and costs of developing and validating their integrated thinking process within the organization and their external reporting process.