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SUSTAINABILITY REPORTING AND INTEGRATED REPORTING: EVIDENCE FROM TURKISH HIGH PERFORMANCE COMPANIES

Year 2019, Volume: 12 Issue: 2, 257 - 270, 29.12.2019
https://doi.org/10.17218/hititsosbil.603228

Abstract

This study widens earlier research, which examined the relationship between financial performance, sustainability reporting (SR) and integrated reporting (IR). High performance enterprises and control group companies were compared with regard to their state of readiness to IR and SR. The population includes non-financial companies in Borsa Istanbul (BIST). Our hypothesis is that HPC will exceed Non-HPC in IR and SR. We evaluate two groups disclosure practices based on an IR and sustainability reported matrix developed from the International Integrated Reporting Committee (IIRC) and Global Reporting Initiative (GRI) standards. The findings reveal that HPCs in Turkey show more on the disclosures of SR and IR compared to Non-HPCs. The paper provides evidence that support the suggestion that Turkish HPCs disclose better information compared to Non-HPCs and achieved to support conclusions of previous research.

References

  • Albertini, E. (2014). A descriptive analysis of environmental disclosure: a longitudinal study of french companies. Journal of Business Ethics, 121(2), 233-254.
  • Bowerman S., Sharman U. (2016). The effect of corporate social responsibility disclosures on share prices in Japan and the UK. Corporate Ownership and Control, 13 (2), 202-2016.
  • Clayton, A.F., Rogerson, J.M. and Rampedi, I. (2015). Integrated reporting vs. sustainability reporting for corporate responsibility in South Africa. Bulletin of Geography Socio-Ecoomics Series, 29, 7-17.
  • Gray, R. (2010). A re-evaluation of social, environmental and sustainability accounting, Sustainability Accounting, Management and Policy Journal, 1(1), 11-32.
  • Guthrie, J., Ricceri, F. and Dumay, J. (2012). Reflections and projections: a decade of intellectual capital accounting research. The British Accounting Review, 44 (2) 68-82.
  • Lee, K.W. and Yeo, G.H.H. (2016). The association between integrated reporting and firm valuation. Review of Quantitative Finance and Accounting, 47(4), 1221-1250.
  • Litfin, T., Meeh-Bunse, G. and Teckert, Ö. (2017). Corporate social responsibility reporting – a stakeholder’s perspective approach. Business System Research, 8(1), 30-42.
  • Mervelskemper, L. and Streit, D. (2017). Enhancing market valuation of ESG performance: is integrated reporting keeping its promise?. Business Strategy and the Environment, 26, 536-549.
  • Milne, M. and Gray, R. (2013), W(h)ither ecology? The triple bottom line, the global reporting initiative, and corporate sustainability reporting, Journal of Business Ethics, 118 (1), 13-29.
  • Miralles-Quiros, M, Miralles-Quiros, J.L. and Arraiano, I.G. (2017). Are firms that contribute to sustainable development valued by investors?. Corporate Social Responsibility and Environmental Management, 24, 71-84.
  • Needles, B. E., Frigo, M., and Powers, M., (2002a). Strategy and financial ratio performance measures. Studies in Financial and Managerial Accounting, 13, 341-359.
  • Needles, B. E., Frigo, M. L., and Powers, M. (2002b). Strategy and financial ratio performance measures: The case of an entering economy”, Indian Accounting Review, 6 (2), 1-15.
  • Needles, B. E., Frigo, M. L., and Powers, M. (2004). Strategy and integrated financial ratio performance measures: empirical evidence of the financial performance scorecard and high-performance companies. Performance Measurement and Management Control: A Compendium of Research. London. 115-151.
  • Needles, B. E., Powers, M., and Frigo, M., (2006). Strategy and integrated financial ratio performance measures: Further evidence of the financial performance scorecard and high-performance companies. Studies in Financial and Managerial Accounting, 16, 241-267.
  • Needles, B. E., Ahmet Turel, Evren Dilek Sengur, and Asli Turel (2012). Corporate governance in Turkey: Issues and practices of high-performance companies. Journal of Accounting and Management Information Systems. Vol. 11 (4), 510-531.
  • Needles, B. E. (2009). Corporate governance in India: Issues and practices of high-performance companies. Working paper presented at IAAER-ANPCONT Third International Accounting Congress, Sao Paulo City, Brazil, June 12, 2009.
  • Needles, B.E., Frigo, M.L., Powers, M. and Shigaev, A. (2016). Integrated reporting and sustainability reporting: an exploratory study of high performance companies. Performance Measurement and Management Control: Contemporary Issues (Studies in Managerial and Financial Accounting), 31, 41-81.
  • Oshika, T. and Saka, C. (2017). Sustainability KPIs for integrated reporting. Social Responsibility Journal, 13 (3), 625-642.
  • Rensburg, R. and Elsamari B. (2014). Is integrated reporting the silver bullet of financial communication? A stakeholder perspective from South Africa. Public Relations Review, 40, 144-152.
  • Rodriguez-Fernandez, M. (2016). Social responsibility and financial performance: the role of good corporate governance. Business Research Quarterly, 19, 137-151.
  • Setia, N., Abhayawansa, S., Joshi, M. and Huynh, A.V. (2015). Integrated reporting in South Africa: Some inıtial evidence. Sustainability Accounting, Management and Policy Journal, 6 (3), 397-424.
  • Sierra-Garcîa, L., Zorio-Grima, A. and Garcîa-Benau, M. (2015) Stakeholder engagement, corporate social responsibility and integrated reporting: an exploratory study. Corporate Social Responsibility and Environmental Management, 22, 286-304.
  • Uyar, A. (2017). Stand-Alone Sustainability reporting practices in an emerging market: A longitudinal investigation. The Journal of Corporate Accounting and Finance, 28 (2), 62-70.
  • Winkler, R.L., Hays, W.L. (1975), Statistics: probability, inference and decision, HRW, Inc. Second Edition, USA.

SUSTAINABILITY REPORTING AND INTEGRATED REPORTING: EVIDENCE FROM TURKISH HIGH PERFORMANCE COMPANIES

Year 2019, Volume: 12 Issue: 2, 257 - 270, 29.12.2019
https://doi.org/10.17218/hititsosbil.603228

Abstract

This study widens earlier research, which examined the relationship between financial performance, sustainability reporting (SR) and integrated reporting (IR). High performance enterprises and control group companies were compared with regard to their state of readiness to IR and SR. The population includes non-financial companies in Borsa Istanbul (BIST). Our hypothesis is that HPC will exceed Non-HPC in IR and SR. We evaluate two groups disclosure practices based on an IR and sustainability reported matrix developed from the International Integrated Reporting Committee (IIRC) and Global Reporting Initiative (GRI) standards. The findings reveal that HPCs in Turkey show more on the disclosures of SR and IR compared to Non-HPCs. The paper provides evidence that support the suggestion that Turkish HPCs disclose better information compared to Non-HPCs and achieved to support conclusions of previous research.

References

  • Albertini, E. (2014). A descriptive analysis of environmental disclosure: a longitudinal study of french companies. Journal of Business Ethics, 121(2), 233-254.
  • Bowerman S., Sharman U. (2016). The effect of corporate social responsibility disclosures on share prices in Japan and the UK. Corporate Ownership and Control, 13 (2), 202-2016.
  • Clayton, A.F., Rogerson, J.M. and Rampedi, I. (2015). Integrated reporting vs. sustainability reporting for corporate responsibility in South Africa. Bulletin of Geography Socio-Ecoomics Series, 29, 7-17.
  • Gray, R. (2010). A re-evaluation of social, environmental and sustainability accounting, Sustainability Accounting, Management and Policy Journal, 1(1), 11-32.
  • Guthrie, J., Ricceri, F. and Dumay, J. (2012). Reflections and projections: a decade of intellectual capital accounting research. The British Accounting Review, 44 (2) 68-82.
  • Lee, K.W. and Yeo, G.H.H. (2016). The association between integrated reporting and firm valuation. Review of Quantitative Finance and Accounting, 47(4), 1221-1250.
  • Litfin, T., Meeh-Bunse, G. and Teckert, Ö. (2017). Corporate social responsibility reporting – a stakeholder’s perspective approach. Business System Research, 8(1), 30-42.
  • Mervelskemper, L. and Streit, D. (2017). Enhancing market valuation of ESG performance: is integrated reporting keeping its promise?. Business Strategy and the Environment, 26, 536-549.
  • Milne, M. and Gray, R. (2013), W(h)ither ecology? The triple bottom line, the global reporting initiative, and corporate sustainability reporting, Journal of Business Ethics, 118 (1), 13-29.
  • Miralles-Quiros, M, Miralles-Quiros, J.L. and Arraiano, I.G. (2017). Are firms that contribute to sustainable development valued by investors?. Corporate Social Responsibility and Environmental Management, 24, 71-84.
  • Needles, B. E., Frigo, M., and Powers, M., (2002a). Strategy and financial ratio performance measures. Studies in Financial and Managerial Accounting, 13, 341-359.
  • Needles, B. E., Frigo, M. L., and Powers, M. (2002b). Strategy and financial ratio performance measures: The case of an entering economy”, Indian Accounting Review, 6 (2), 1-15.
  • Needles, B. E., Frigo, M. L., and Powers, M. (2004). Strategy and integrated financial ratio performance measures: empirical evidence of the financial performance scorecard and high-performance companies. Performance Measurement and Management Control: A Compendium of Research. London. 115-151.
  • Needles, B. E., Powers, M., and Frigo, M., (2006). Strategy and integrated financial ratio performance measures: Further evidence of the financial performance scorecard and high-performance companies. Studies in Financial and Managerial Accounting, 16, 241-267.
  • Needles, B. E., Ahmet Turel, Evren Dilek Sengur, and Asli Turel (2012). Corporate governance in Turkey: Issues and practices of high-performance companies. Journal of Accounting and Management Information Systems. Vol. 11 (4), 510-531.
  • Needles, B. E. (2009). Corporate governance in India: Issues and practices of high-performance companies. Working paper presented at IAAER-ANPCONT Third International Accounting Congress, Sao Paulo City, Brazil, June 12, 2009.
  • Needles, B.E., Frigo, M.L., Powers, M. and Shigaev, A. (2016). Integrated reporting and sustainability reporting: an exploratory study of high performance companies. Performance Measurement and Management Control: Contemporary Issues (Studies in Managerial and Financial Accounting), 31, 41-81.
  • Oshika, T. and Saka, C. (2017). Sustainability KPIs for integrated reporting. Social Responsibility Journal, 13 (3), 625-642.
  • Rensburg, R. and Elsamari B. (2014). Is integrated reporting the silver bullet of financial communication? A stakeholder perspective from South Africa. Public Relations Review, 40, 144-152.
  • Rodriguez-Fernandez, M. (2016). Social responsibility and financial performance: the role of good corporate governance. Business Research Quarterly, 19, 137-151.
  • Setia, N., Abhayawansa, S., Joshi, M. and Huynh, A.V. (2015). Integrated reporting in South Africa: Some inıtial evidence. Sustainability Accounting, Management and Policy Journal, 6 (3), 397-424.
  • Sierra-Garcîa, L., Zorio-Grima, A. and Garcîa-Benau, M. (2015) Stakeholder engagement, corporate social responsibility and integrated reporting: an exploratory study. Corporate Social Responsibility and Environmental Management, 22, 286-304.
  • Uyar, A. (2017). Stand-Alone Sustainability reporting practices in an emerging market: A longitudinal investigation. The Journal of Corporate Accounting and Finance, 28 (2), 62-70.
  • Winkler, R.L., Hays, W.L. (1975), Statistics: probability, inference and decision, HRW, Inc. Second Edition, USA.
There are 24 citations in total.

Details

Primary Language English
Journal Section Articles
Authors

Belverd E. Needles Jr. This is me 0000-0001-8313-6218

Emre Selçuk Sarı 0000-0001-6675-3214

Nevzat Güngör 0000-0001-9883-1985

Ahmet Türel 0000-0002-6464-0379

Mustafa Can 0000-0002-7786-5198

Publication Date December 29, 2019
Published in Issue Year 2019 Volume: 12 Issue: 2

Cite

APA Needles Jr., B. E., Sarı, E. S., Güngör, N., Türel, A., et al. (2019). SUSTAINABILITY REPORTING AND INTEGRATED REPORTING: EVIDENCE FROM TURKISH HIGH PERFORMANCE COMPANIES. Hitit Üniversitesi Sosyal Bilimler Enstitüsü Dergisi, 12(2), 257-270. https://doi.org/10.17218/hititsosbil.603228
AMA Needles Jr. BE, Sarı ES, Güngör N, Türel A, Can M. SUSTAINABILITY REPORTING AND INTEGRATED REPORTING: EVIDENCE FROM TURKISH HIGH PERFORMANCE COMPANIES. hititsosbil. December 2019;12(2):257-270. doi:10.17218/hititsosbil.603228
Chicago Needles Jr., Belverd E., Emre Selçuk Sarı, Nevzat Güngör, Ahmet Türel, and Mustafa Can. “SUSTAINABILITY REPORTING AND INTEGRATED REPORTING: EVIDENCE FROM TURKISH HIGH PERFORMANCE COMPANIES”. Hitit Üniversitesi Sosyal Bilimler Enstitüsü Dergisi 12, no. 2 (December 2019): 257-70. https://doi.org/10.17218/hititsosbil.603228.
EndNote Needles Jr. BE, Sarı ES, Güngör N, Türel A, Can M (December 1, 2019) SUSTAINABILITY REPORTING AND INTEGRATED REPORTING: EVIDENCE FROM TURKISH HIGH PERFORMANCE COMPANIES. Hitit Üniversitesi Sosyal Bilimler Enstitüsü Dergisi 12 2 257–270.
IEEE B. E. Needles Jr., E. S. Sarı, N. Güngör, A. Türel, and M. Can, “SUSTAINABILITY REPORTING AND INTEGRATED REPORTING: EVIDENCE FROM TURKISH HIGH PERFORMANCE COMPANIES”, hititsosbil, vol. 12, no. 2, pp. 257–270, 2019, doi: 10.17218/hititsosbil.603228.
ISNAD Needles Jr., Belverd E. et al. “SUSTAINABILITY REPORTING AND INTEGRATED REPORTING: EVIDENCE FROM TURKISH HIGH PERFORMANCE COMPANIES”. Hitit Üniversitesi Sosyal Bilimler Enstitüsü Dergisi 12/2 (December 2019), 257-270. https://doi.org/10.17218/hititsosbil.603228.
JAMA Needles Jr. BE, Sarı ES, Güngör N, Türel A, Can M. SUSTAINABILITY REPORTING AND INTEGRATED REPORTING: EVIDENCE FROM TURKISH HIGH PERFORMANCE COMPANIES. hititsosbil. 2019;12:257–270.
MLA Needles Jr., Belverd E. et al. “SUSTAINABILITY REPORTING AND INTEGRATED REPORTING: EVIDENCE FROM TURKISH HIGH PERFORMANCE COMPANIES”. Hitit Üniversitesi Sosyal Bilimler Enstitüsü Dergisi, vol. 12, no. 2, 2019, pp. 257-70, doi:10.17218/hititsosbil.603228.
Vancouver Needles Jr. BE, Sarı ES, Güngör N, Türel A, Can M. SUSTAINABILITY REPORTING AND INTEGRATED REPORTING: EVIDENCE FROM TURKISH HIGH PERFORMANCE COMPANIES. hititsosbil. 2019;12(2):257-70.