Evolving of Selected Integrated Reporting Capitals among Listed Bahraini Banks
DOI:
https://doi.org/10.51325/ijbeg.v1i1.10Keywords:
Firm- Integrated Reporting; Voluntary Disclosure; Sustainability; Legitimacy Theory.Abstract
The purpose of this study is to synthesize the implementation level of Integrated Reporting (IR) in Bahraini banks based on their adoption of a comprehensive disclosure checklist. The data cover the period of 2014-2015 for 12 banks listed on Bahrain Stock Exchange. Using 38 disclosure items grouped into four categories (intellectual capital, social and relational capital, intellectual capital, and human capital), banks’ annual reports were content analyzed to evaluate the level of IR disclosure. The findings indicate that the overall implementation level was moderate, standing at 65.54% and 67.79% in 2014 and 2015, respectively, showing a slight increasing trend. The findings also reveal that BBK took the lead with a disclosure percentage of 70.27 % and 75.68 % in both years. In terms of categories, the highest level of implementation was recorded for human capital, with a level of 81.3% and 80.2% in 2014 and 2015 respectively, while the lowest level of implementation was noted for social and relational capital.
References
Abeysekera, I. (2013). A template for integrated reporting. Journal of Intellectual Capital, 14(2), 227-245. https://doi.org/10.1108/14691931311323869
Alareeni, B. (2017). The association between audit firm characteristics and audit quality: A meta-analysis. (SSRN Working Papers No. 2952836). Social Sciences Research Network. https://doi.org/10.2139/ssrn.2952836
Alareeni, B., & Aljuaidi, O. (2014). The modified Jones and Yoon models in detecting earnings management in Palestine Exchange (PEX). International Journal of Innovation and Applied Studies, 9(4), 2028–9324.
Alareeni, B., & Branson, J. (2011). The relative performance of auditors’ going-concern opinions and statistical failure prediction models in Jordan. Accountancy & Bedrijfskunde, 8, 23–35.
Alareeni, B., & Branson, J. (2013). Predicting listed companies’ failure in Jordan using Altman models: A case study. International Journal of Business and Management, 8(1), 113-126. https://doi.org/10.5539/ijbm.v8n1p113
Alareeni, B., & Deghish, H. (2016). Applicability of the balanced scorecard to assess performance of Al-Aqsa media network institution in Gaza Strip. IUG Journal of Economics and Business Studies, 24(3), 21-46. https://doi.org/10.12816/00355
Al-Sartawi, A. (2013). The impact of corporate governance on GCC listed banks performance: Comparative study between the Islamic and non-Islamic banks. Attaawun Journal, 79, 66-90.
Al-Sartawi, A. (2017). The level of disclosing intellectual capital in the gulf cooperation council countries. International Research Journal of Finance and Economics, 159, 90-99.
Bryman, A. (2015). Social research methods. Oxford: Oxford University Press.
De Villiers, C., Rinaldi, L., & Unerman, J. (2014). Integrated reporting: Insights, gaps and an agenda for future research. Accounting, Auditing & Accountability Journal, 27(7), 1042-1067. https://doi.org/10.1108/AAAJ-06-2014-1736
Deegan, C. (2002). Introduction: The legitimising effect of social and environmental disclosures–A theoretical foundation. Accounting, Auditing & Accountability Journal, 15(3), 282-311. https://doi.org/10.1108/09513570210435852
Dragu, I. M., & Tiron-Tudor, A. (2013). The integrated reporting initiative from an institutional perspective: Emergent factors. Procedia-Social and Behavioral Sciences, 92, 275-279. https://doi.org/10.1016/j.sbspro.2013.08.672
Flick, U. (2015). Introducing research methodology: A beginner's guide to doing a research project. London: Sage Publication Ltd.
Frías-Aceituno, J. V., Rodríguez-Ariza, L., & García-Sánchez, I. M. (2013). Is integrated reporting determined by a country’s legal system? An exploratory study. Journal of Cleaner Production, 44, 45-55. https://doi.org/10.1016/j.jclepro.2012.12.006
García-Sánchez, I. M., Rodríguez-Ariza, L., & Frías-Aceituno, J. V. (2013). The cultural system and integrated reporting. International Business Review, 22(5), 828-838. https://doi.org/10.1016/j.ibusrev.2013.01.007
Gray, R., Kouhy, R., & Lavers, S. (1995). Constructing a research database of social and environmental reporting by UK companies. Accounting, Auditing & Accountability Journal, 8(2), 78-101. https://doi.org/10.1108/09513579510086812
Halbritter, G., & Dorfleitner, G. (2015). The wages of social responsibility—Where are they? A critical review of ESG investing. Review of Financial Economics, 26, 25-35. https://doi.org/10.1016/j.rfe.2015.03.004
Hamdan, A., Buallay, A., & Alareeni, B. (2017). The moderating role of corporate governance on the relationship between intellectual capital efficiency and firm. International Journal of Learning and Intellectual Capital, 14(4), 295–318. https://doi.org/10.1504/IJLIC.2017.087377
International Integrated Reporting Council. (2013). International framework.
Integrated Reporting Council of South Africa (IRCSA). (2011, January). Framework for integrated reporting and the integrated report.
Jensen, J. C., & Berg, N. (2013). Determinants of traditional sustainability reporting versus integrated reporting: An institutionalist approach. Business Strategy and the Environment, 21(5), 299-316. https://doi.org/10.1002/bse.740
Institute of Directors in Southern Africa. (2002) King report on corporate governance for South Africa- 2002 (King II report).
Makiwane, T. S., & Padia, N. (2013). Evaluation of corporate integrated reporting in South Africa post King III release South Africa: An exploratory enquiry. Journal of Economic and Financial Sciences, 6(2), 421-438. https://doi.org/10.4102/jef.v6i2.268
Neuman, W.L., & Robson, K., (2014). Basics of social research: Qualitative and quantitative approaches (3rd Ed.). Boston: Pearson.
Rensburg, R., & Botha, E. (2014). Is integrated reporting the silver bullet of financial communication? A stakeholder perspective from South Africa. Public Relations Review, 40(2), 144-152. https://doi.org/10.1016/j.pubrev.2013.11.016
Ruiz-Lozano, M., & Tirado-Valencia, P. (2016). Do industrial companies respond to the guiding principles of the Integrated Reporting framework? A preliminary study on the first companies joined to the initiative. Revista De Contabilidad, 19(2), 252-260. https://doi.org/10.1016/j.rcsar.2016.02.001
Salvioni, D. M., & Bosetti, L. (2014). Stakeholder engagement and integrated reporting: Evidence from the adoption of the IIRC Framework. Journal of Strategic and International Studies, 9(3), 78-89.
Setia, N., Abhayawansa, S., Joshi, M., & Huynh, A. V. (2015). Integrated reporting in South Africa: Some initial evidence. Sustainability Accounting, Management and Policy Journal, 6(3), 397-424. https://doi.org/10.1108/SAMPJ-03-2014-0018
Simnett, R., Vanstraelen, A., & Chua, W. F. (2009). Assurance on sustainability reports: An international comparison. The Accounting Review, 84(3), 937-967. https://doi.org/10.2308/accr.2009.84.3.937
Suchman, M. C. (1995). Managing legitimacy: Strategic and institutional approaches. Academy of Management Review, 20(3), 571-610. https://doi.org/10.5465/amr.1995.9508080331
Downloads
Published
Issue
Section
License
Copyright (c) 2018 EuroMid Journal of Business and Tech-Innovation (EJBTI)
This work is licensed under a Creative Commons Attribution 4.0 International License.
