Abstract:
This aim of this research is to examine the association between integrated reports and company financial performance in the context of the mandatory introduction of integrated reporting on the Johannesburg Stock Exchange. The focus of this research was ascertain whether the differences in the quality of integrated reports will be associated with share returns. Empirical studies conducted on this emerging field of company disclosure pointed to an association between the differences in the quality of integrated reports and share returns. The research employed the investment style engine analysis to examine the association between integrated report scores and share returns of the top 40 JSE listed companies for the period 2012 to 2017. Integrated report scores are determined using the International Integrated Reporting Framework. The results found that there is no association between the differences in the quality of integrated reports and share returns. These results contradict the literature reviewed and indicate that the introduction of integrated reporting is not rewarded by investors. Consequently, it is advisable not to use integrated reports as an investment style.