Integrated reporting, textual risk disclosure and market value

Tamer Elshandidy, Moataz Elmassri, Mohamed Elsayed

Research output: Contribution to journalArticlepeer-review

14 Citations (Scopus)


Purpose: Exploiting the mandatory provision of integrated reporting in South Africa, this paper aims to investigate whether this regulatory switch from the conventional annual report is associated with differences in the level of textual risk disclosure (TRD). This paper also examines the economic usefulness of this regulatory change by observing the impact of TRD on the complying firms’ market values. Design/methodology/approach: Archival data are collected and examined using time-series difference design and difference-in-differences design. Findings: The authors find that the level of TRD within the mandatory integrated reporting is significantly lower than that of annual reports. The authors find that the impact of TRD in integrated reporting on market value compared to that of annual reports is statistically not different from zero. The authors’ further analyses suggest that corporate governance effectiveness is not a moderating factor to the study results. The results are robust to comparisons with the voluntary adoption of integrated reporting in the UK. Originality/value: Collectively, the study results suggest that managers’ adherence to the mandatory provision of integrated reporting has significantly decreased the level of (voluntary) TRD they tended to convey within the conventional annual reports, resulting in a trivial impact on market value. These unintended consequences should be of interest to the International Integrated Reporting Council and other bodies interested in integrated reporting.

Original languageEnglish
Pages (from-to)173-193
Number of pages21
JournalCorporate Governance (Bingley)
Issue number1
Publication statusPublished - Jan 21 2022
Externally publishedYes


  • Institutional theory
  • Integrated reporting
  • Market value
  • Textual risk disclosure

ASJC Scopus subject areas

  • Business, Management and Accounting (miscellaneous)


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