An evaluation of the integrated reporting quality by listed companies in South Africa

Abstract

Background: The study evaluated IRQ of listed-JSE firms and whether there was an improvement in IRQ for the period 2022 to 2024. South Africa utilises integrated reporting to encourage the disclosure of non-financial performance information that supports long-term business strategies and fosters the connection between financial and sustainability reporting. IIR framework was established and integrated with corporate governance reporting principles outlined in King IV. This indicates that for companies to produce a quality integrated report, they must adhere to King IV and comply with the IIR framework. However, despite adoption of IR, entities struggle to implement full IIR framework and issue poor IRQ. Methods: Qualitative study approach was adopted using secondary data from 44 listed firms under RII from 2022 to 2024. Content analysis technique and fixed-effect model were used to evaluate the quality of 132 IR to identify elements that significantly impact IRQ. Findings: Research findings shows that listed JSE firms publish moderate IRQ and the trend analysis shows improvement in IRQ from 2022 to 2024 relating to “readability and clarity of document and content element” areas. Contribution: Results provide contribution to companies by providing gaps in IR that hinder IRQ and encourage them to provide requisite training on how to develop IRQ. Moreover, the findings also provide industry guideline through pointing out existing gaps in the provision of IRQ and recommends ways to improve their IR.