The Use and Usefulness of Integrated Reports in Decision Making – Evidence from the Users in Namibia

Abstract

Purpose: The use and usefulness of integrated reports have in the recent time constituted a subject of debate in practice and academic with contradicting findings. However, integrated reports represent a development in corporate reporting necessitated by the growing demand by stakeholders to obtain balanced information about companies on which to make decisions. The aim of this paper is to investigate how users perceive the use and usefulness of Namibian listed companies' annual integrated reports (IRE) for decision-making. It also seeks to assess whether there are any significance differences in perceptions of the use and usefulness of IRE information among different user groups. Methodology: Users of integrated reports were polled using a questionnaire survey method to collect primary data. The questionnaires were sent to representatives of stakeholders from NSX-listed companies as users. Descriptive statistics, such as one-way ANOVA, were used to evaluate the results. Findings: The study examines the perceived usefulness of Integrated Reporting (IRE) components such as SPLOCI, SFP, and ER, finding their usefulness statistically significant for decision-making. The One-way ANOVA results indicate no significant differences in users’ perceptions of IRE’s usefulness, encouraging preparers to disclose necessary information confidently. However, two-way ANOVA reveals significant differences in decision usefulness attributes, suggesting certain IRE components are more useful. Consequently, Namibian companies may voluntarily disclose these components to meet stewardship obligations. . Unique Contribution to Theory, Practice and Policy: The results show that users of IRE produced by publicly traded companies in Namibia find it useful. Furthermore, it demonstrates that various user groups' views of the use and usefulness of IRE does not vary significantly. Regulators and standard setters tasked with implementing accounting principles/standards relevant to integrated reporting should be interested in the findings outlined in this paper. As a result, the findings could be beneficial to regulatory bodies in Namibia (e.g., the Public Accountants and Auditors Board) in improving the disclosure practices of listed companies in Namibia (e.g., on a voluntary basis) and increasing capital market transparency.