The adoption of integrated reporting: a developing country perspective
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Date
2019
Journal Title
Journal ISSN
Volume Title
Publisher
Journal of Financial Reporting and Accounting
Abstract
The purpose of this paper is to establish why firms in developing countries are slow to adopt
integrated reporting (IR) and what needs to be done to ensure such firms embrace the practice of integrated
reporting using evidence from Uganda.
Design/methodology/approach – This study uses a narrative cross sectional survey conducted using
qualitative data collection techniques specifically the structured interviews. We conducted interviews on
senior executive managers of Capital Markets Authority, Professional accountancy bodies, Uganda Securities
Exchange (USE) and firms listed on Uganda Securities Exchange. The study also involved an analysis of
annual reports of listed firms on USE from 2010 to 2016.
Findings – Results suggest that, firms are slow to adopt integrated reporting because of the scarce
resources, culture and leadership, stakeholders demand, the regulatory requirement, the effect of globalization
and the mindset, lack of awareness about IR and the nature of business and size. Results further suggest that
integrated reporting be made mandatory for all firms, especially those that are publicly interested, such as
financial institutions, and those that are listed on the stock exchange.
Originality/value – IR being an emerging phenomenon there are few empirical studies exploring IR
practices in a developing economy perspective. To the best of the authors’ knowledge this is the first paper
that provides some insights into IR from a Ugandan perspective using the Diffusion of innovation theory.
Description
Keywords
Uganda, Integrated reporting, Sustainability reporting, Listed companies, Diffusion theory, Listed firms
Citation
Bananuka, J., Tumwebaze, Z., & Orobia, L. (2019). The adoption of integrated reporting: a developing country perspective. Journal of Financial Reporting and Accounting. DOI 10.1108/JFRA-09-2017-0089