High-quality integrated reporting based on concentrated versus dispersed ownership
Dian Agustia, Wiwik Supratiwi, Johnny Jermias
Keywords:
concentrated ownership, dispersed ownership, integrated reporting quality,
ownership structure, ownership pressure
Abstract:
Leading global companies have begun to focus their activities on a larger spectrum, including
both financial and non-financial performance, to gain and maintain competitive advantages.
Integrated reporting provides opportunities through which companies can increase transparency
about their business activities, including environmental, social, and governance (ESG)
initiatives. ESG has become increasingly important as a key component of business
competitiveness. Using multiple regression models, we empirically investigate the influence of
ownership structure on the quality of integrated reporting. Based on a sample of 1,017
integrated reports from Asian and European regions for the period of 2016-2019, we
hypothesize and find that companies with dispersed ownership show higher quality integrated
reporting as compared to companies with concentrated ownership. Companies with dispersed
ownership face a higher level of pressure from various individuals and institutional
shareholders, leading to more effective control of the companies’ operations. By contrast,
companies with concentrated ownership tend to be influenced more by the majority of the
shareholders, leading to less effective control of the companies’ operations. Our study
contributes to the literature on gaining and maintaining competitive advantages through ESG
initiatives by providing evidence that the pressures from various shareholders to invest in ESG
activities are beneficial for companies marketplace competitiveness. Our study suggests that
companies need to diversify their ownership to improve their financial as well as non-financial
performance.
Fulltext download:
 High-quality integrated reporting based on concentrated versus dispersed ownership [PDF file] [Filesize: 192.43 KB]
 10.7441/joc.2023.04.01
Agustia, D., Supratiwi, W. & Jermias, J. (2023). High-quality integrated reporting based on concentrated versus dispersed
ownership. Journal of Competitiveness, 15(4), 3-18. https://doi.org/10.7441/joc.2023.04.01
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