The Value Creation Model in Integrated Reporting: Evidence from Poland
Purpose: The purpose of the paper is to identify and evaluate the approach and the quality of disclosures on value creation in integrated reports published by Polish companies. The article attempts to determine how practitioners understand and explain the concept of value creation. The study examines the integrated reporting practice of Polish companies to provide insight into the current status of value creation disclosures. Design/methodology/approach: The quantitative and qualitative content analysis of value creation model disclosures in integrated reporting was performed. The quality of disclosures was assessed based on reports published by 31 capital groups between 2013-2021. A case study analysis of value creation disclosures was conducted based on the reports published for the year 2021, by 24 capital groups. The content analysis of integrated reports was conducted according to the following areas: background (motivations, objectives, beneficiaries, responsible persons, CEO’s commitment, reporting standards), assurance and reliability (audit, verification, acknowledgments and awards), form of publishing, and content elements (distinguishing organizational overview and external environment, governance, business model, risks and opportunities, strategy and resource allocation, performance, outlook, capitals, KPIs, value-creation process). The article uses the results of literature studies on the subject, the results of previous research, and observations of business practice in the area of integrated reporting. Findings: The findings reveal a definitely diverse approach of companies to disclosures in the field of value creation. In most cases, the value creation model is treated as a business model, however, some companies present these two categories separately, devoting separate chapters to both issues in integrated reports. Companies using the capital approach briefly present individual capitals with a classic division into manufactured, social, natural, intellectual, financial and human capital. The analysis also revealed a large variation in the reporting of indicators describing the effectiveness of individual capitals. It can be observed a subjective treatment of indicators and their incomplete reporting, as well as references to GRI indicators. Hence, the quality of the information presented on value creation varies. Practical Implications: The results of the study complement the research gap of current literature on value creation by presenting the practice of integrated reporting in Polish companies. Originality/Value: The research presented in the article contributes to the current literature on integrated reporting by using the novel dataset, identifying the level of value creation disclosures in the examined integrated reports, and is aimed at presenting a critical interpretative perspective.