The Impact of Financial and Non-Financial Capitals on JSE-Listed Companies – An Augmented Integrated Reporting Framework
The measurement of the impact of non-financial capitals on company value within the context of integrated reporting (IR) has remained an elusive empirical and practitioner question. The IR framework was designed to provide an improved corporate reporting approach to different stakeholders. However,...
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| Format: | Article |
| Language: | English |
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Varazdin Development and Entrepreneurship Agency
2024-03-01
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| Series: | Journal of Economic and Social Development (Varaždin) |
| Subjects: | |
| Online Access: | https://www.jesd-online.com/articles/the-impact-of-financial-and-nonfinancial-capitals-on-jselisted-companies--an-augmented-integrated-reporting-framework.pdf |
| _version_ | 1797229348550344704 |
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| author | Dr Felix Chirairo Prof Mashukudu Hartley Molele |
| author_facet | Dr Felix Chirairo Prof Mashukudu Hartley Molele |
| author_sort | Dr Felix Chirairo |
| collection | DOAJ |
| description | The measurement of the impact of non-financial capitals on company value within the context of integrated reporting (IR) has remained an elusive empirical and practitioner question. The IR framework was designed to provide an improved corporate reporting approach to different stakeholders. However, the framework falls short of providing a tool that practitioners and stakeholders could use to determine how company value has changed over time. Objectives: The main objective of this research was to produce an enhanced IR framework through an Augmented Integrated Reporting Model (AIRM). Methods: The model tested the relationship of five capitals (financial, manufactured, intellectual, human, and social and relationship capitals) to company value. The study used quantitative research methodology that utilised panel data fixed effects regression analysis in EViews software. Results: The AIRM demonstrates that social and relationship capital have a positive impact on market share price, EVA and TobinQ, while association to share price at book value is negative. Human capital has a positive relationship to market share price and a negative influence on EVA, TobinQ and share price at book value. Intellectual and manufactured capital have positive associations with the four dependent variables of company value. Conclusions: This research implies that a contribution has been made in resolving the challenge of quantifying and measuring non-financial capitals and how they impact company value. The study recommends that IR report preparers, report analysts, investors, academics, and other relevant stakeholders use the AIRM to measure and manage the various capitals in the process of company value creation. |
| first_indexed | 2024-04-24T15:11:10Z |
| format | Article |
| id | doaj.art-e384d5ab0d57422eaf5d6cd847708301 |
| institution | Directory Open Access Journal |
| issn | 1849-3327 |
| language | English |
| last_indexed | 2024-04-24T15:11:10Z |
| publishDate | 2024-03-01 |
| publisher | Varazdin Development and Entrepreneurship Agency |
| record_format | Article |
| series | Journal of Economic and Social Development (Varaždin) |
| spelling | doaj.art-e384d5ab0d57422eaf5d6cd8477083012024-04-02T11:09:25ZengVarazdin Development and Entrepreneurship AgencyJournal of Economic and Social Development (Varaždin)1849-33272024-03-0111010109The Impact of Financial and Non-Financial Capitals on JSE-Listed Companies – An Augmented Integrated Reporting FrameworkDr Felix Chirairo0Prof Mashukudu Hartley Molele1University of South Africa School of Business LeadershipUniversity of South Africa School of Business LeadershipThe measurement of the impact of non-financial capitals on company value within the context of integrated reporting (IR) has remained an elusive empirical and practitioner question. The IR framework was designed to provide an improved corporate reporting approach to different stakeholders. However, the framework falls short of providing a tool that practitioners and stakeholders could use to determine how company value has changed over time. Objectives: The main objective of this research was to produce an enhanced IR framework through an Augmented Integrated Reporting Model (AIRM). Methods: The model tested the relationship of five capitals (financial, manufactured, intellectual, human, and social and relationship capitals) to company value. The study used quantitative research methodology that utilised panel data fixed effects regression analysis in EViews software. Results: The AIRM demonstrates that social and relationship capital have a positive impact on market share price, EVA and TobinQ, while association to share price at book value is negative. Human capital has a positive relationship to market share price and a negative influence on EVA, TobinQ and share price at book value. Intellectual and manufactured capital have positive associations with the four dependent variables of company value. Conclusions: This research implies that a contribution has been made in resolving the challenge of quantifying and measuring non-financial capitals and how they impact company value. The study recommends that IR report preparers, report analysts, investors, academics, and other relevant stakeholders use the AIRM to measure and manage the various capitals in the process of company value creation.https://www.jesd-online.com/articles/the-impact-of-financial-and-nonfinancial-capitals-on-jselisted-companies--an-augmented-integrated-reporting-framework.pdffinancial capitalintegrated reportingjse-listed companiesnon-financial capitalsstakeholders. |
| spellingShingle | Dr Felix Chirairo Prof Mashukudu Hartley Molele The Impact of Financial and Non-Financial Capitals on JSE-Listed Companies – An Augmented Integrated Reporting Framework Journal of Economic and Social Development (Varaždin) financial capital integrated reporting jse-listed companies non-financial capitals stakeholders. |
| title | The Impact of Financial and Non-Financial Capitals on JSE-Listed Companies – An Augmented Integrated Reporting Framework |
| title_full | The Impact of Financial and Non-Financial Capitals on JSE-Listed Companies – An Augmented Integrated Reporting Framework |
| title_fullStr | The Impact of Financial and Non-Financial Capitals on JSE-Listed Companies – An Augmented Integrated Reporting Framework |
| title_full_unstemmed | The Impact of Financial and Non-Financial Capitals on JSE-Listed Companies – An Augmented Integrated Reporting Framework |
| title_short | The Impact of Financial and Non-Financial Capitals on JSE-Listed Companies – An Augmented Integrated Reporting Framework |
| title_sort | impact of financial and non financial capitals on jse listed companies an augmented integrated reporting framework |
| topic | financial capital integrated reporting jse-listed companies non-financial capitals stakeholders. |
| url | https://www.jesd-online.com/articles/the-impact-of-financial-and-nonfinancial-capitals-on-jselisted-companies--an-augmented-integrated-reporting-framework.pdf |
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