Integrated reporting and financial performance of mining companies listed on the JSE: evidence from South Africa.

Abstract

Masters Degree. University of KwaZulu-Natal, Durban.Corporate reporting standards have evolved over time, with companies now employing a framework that demonstrates accountability to sakeholders, the environment, society, and the global economy. South Africa was the initial country to mandate the application of the widely adopted framework to all listed companies. Businesses implementing integrated reporting enjoy various benefits, but studies on the benefits of integrated reporting have lagged behind, particularly regarding the financial benefits to the implementing company. This may be the reason why some countries have not yet adopted this reporting framework. The current study investigated the relationship between integrated reporting and the financial performance and firm value of JSE-listed mining companies. The study adhered to a positivist paradigm and made use of numerical analysis of secondary data. Both random effects and fixed effects models were utilised to assess the effect. The study sample comprised mining companies listed on the JSE from 2005 to 2019. The findings revealed a significant negative relationship between integrated reporting and financial performance as evaluated by ROA and EVA. Additionally, the results indicated a negligible negative relationship between integrated reporting and firm value as measured by Tobin’s Q. This suggests that mining companies are not experiencing quantitative benefits from the synergies that arise from the adoption of integrated reporting