Impact of integrated reporting on enterprise value-based management: evidence from Ukraine
-
DOIhttp://dx.doi.org/10.21511/ppm.18(2).2020.14
-
Article InfoVolume 18 2020, Issue #2, pp. 154-165
- Cited by
- 980 Views
-
194 Downloads
This work is licensed under a
Creative Commons Attribution 4.0 International License
An integrated approach to the enterprise value-based management (VBM) provides a precise assessment of all accounting entities. The implementation of such an approach allows determining the value of objects that do not have a material form (intangible assets), but have a significant impact on the enterprise value. The growing role of accounting data in enterprise value formation and management determines the necessity of the research. Thus, the article aims to investigate the effect of integrated reporting implementation on the VBM at the Ukrainian enterprises. Based on recent scientific researches, the study substantiates that the VBM approach should be based on an integrated reporting concept and proves the necessity of transition from the traditional accounting model to sustainability accounting in Ukraine. The findings reveal the approach of integrated reporting incorporation into the enterprise VBM system. The authors offer the concept of creating an integrated reporting model in Ukraine that considers economic and legal criteria, basic and qualitative principles, and production, human, financial, social, natural, and intellectual capital.
- Keywords
-
JEL Classification (Paper profile tab)L25, M10, M41
-
References34
-
Tables0
-
Figures2
-
- Figure 1. Incorporation of integrated reporting into the enterprise VBM system
- Figure 2. The concept of creating an integrated reporting model in Ukraine
-
- Adams, S., & Simnett, R. (2011). Integrated Reporting: An Opportunity for Australia’s Not-for-Profit Sector. Australian Accounting Review, 3, 292-301.
- Arnold, G., & Davis, M. (Eds.). (2000). Value – based Management: Context and Application. Wiley.
- Baker Tilly Ukraine (2019). Chto poluchayut kompanii, kotorye gotovyat integrirovannuyu otchetnost – kruglyy stol [What the companies that prepare the integrated reporting obtain – round table]. (In Russian).
- Copeland, T., Koller, T., & Murrin, J. (1995). Valuation: Measuring and Managing the Value of Companies (2nd ed.). Wiley.
- Corporate Register (2019). CR Reporting Awards 2019.
- CSR Ukraine (2018). Indeks prozorosti saitiv Ukrainskykh kompanii 2017 [Index of Ukrainian companies’ websites transparency 2017]. (In Ukrainian).
- D’yakonova, I., Nikitina, A., Sukhonos, V., & Zhuravka, F. (2018). Methodological bases of estimating the efficiency of economic security management of the enterprises in the global environment. Investment Management and Financial Innovations, 15(2), 145-153.
- Deloitte (2019). Sustainability and integrated reporting – An analysis of the 50 largest companies in Norway.
- DiPiazza, S. A., & Eccles, R. G. (2003). Budushchee korporativnoi otchetnosti: kak vernut doverie obshchestva [Future of corporate reporting: how to restore the social trust]. Moscow: Alpina Pablisher. (In Russian)
- Do Hoon Ki, Wook Bin Leem, & Jee Hoon Yuk (2019). The effect of IFRS adoption on the value relevance of accounting information: evidence from South Korea. Investment Management and Financial Innovations, 16(2), 78-88.
- Drager, K. (2017). Integrirovannaya otchetnost dolzhna rabotat dlya vsekh [Integrated reporting should work for all]. Ekonomicheskie strategii –Economic Strategies, 3, 176-185. (In Russian).
- Eccles, R. G., Krzus, M. P., & Solano, C. (2019). A Comparative Analysis of Integrated Reporting in Ten Countries.
- EUR-Lex (2014). Directive 2014/95/EU of the European Parliament and of the Council of 22 October 2014 amending Directive 2013/34/EU as regards disclosure of non-financial and diversity information by certain large undertakings and groups Text with EEA relevance.
- Gibassier, D., Adams, C., & Tiphaine, J. (2019). Integrated Reporting and the Capitals’ Diffusion. Report published by the French Accounting Standard Setter (Autorité des Normes Comptables).
- Global Reporting Initiative (2013). GRI Sustainability Reporting Standards.
- Hinke, J., Gezo, M., Smutka, L., & Strielkowski, W. (2020). Management of financial statements auditing in the Visegrad Group countries. Problems and Perspectives in Management, 18(1), 1-16.
- International Integrated Reporting Council (2013). The International Integrated Reporting Framework 2013.
- International Integrated Reporting Council (2015). Mezhdunarodnyy standart integrirovannoy otchetnosti [International Integrated Reporting Standard]. (In Russian).
- International Integrated Reporting Council (2017). Integrated Report 2017.
- International Integrated Reporting Council (2020). Chartered Governance Institute and IIRC release guide to integrated reporting.
- King, M. (2018). 2018 address by Judge Professor Mervyn King, Chairman of the Council, IIRC.
- KMPG (2011). Hlobalnyi dohovir OON. Zvit pro rezultaty kpmg.ua [UNO Global Agreement. Report on kpmg.ua results]. (In Ukrainian).
- McTaggart, J. M., Mankins, M. С., & Kontes, P. W. (1994). The Value Imperative: Managing for Superior Shareholder Returns. New York: Free Press.
- Mishra, N. (2020) India desperately needs one more reform – integrated reporting.
- Okwuosa, I. (2020). A journey of a thousand miles begins with one step’: ICAN Nigeria establishes the Nigerian Integrated Reporting Committee.
- PricewaterhouseCoopers PwC (2014). Value Creation: The Journey Continues: A Survey of JSE Top-0 Companies Integrated Reports 2014.
- Rappaport, A. (1998). Creating shareholder value: The new standard for business performance (2nd ed.). New York: Free Press.
- Stewart, G. B. (1991). The Quest for Value: A Guide for Senior Managers. Harper Collins.
- Stewart, T. A. (1997). Intellectual Capital. The New Wealth of Organizations. New York: Doubleday.
- Tilley, C. (2019). SSE 10 Years of Impact and Progress Report.
- United Nations Global Compact (2014). Guide to Corporate Sustainability.
- World Business Council for Sustainable Development (2013). Controlling Non-Financial Reporting.
- World Business Council for Sustainable Development (2019). Reporting matters. Navigating the landscape: a path forward for sustainability reporting. WBCSD 2019 Report.
- Zhuravka, F. O., Kravchenko, O. V., & Ovcharova, N. V. (2018). Development of accounting-information provision of enterprise value-based management. Financial and credit activity: problems of theory and practice, 1(24), 113-122.