Integrated reporting: A research on banking and cement sectors

In today's world, the disclosure of the performances of enterprises based only on financial information has been insufficient to meet the expectations of the parties interested in enterprises to reach the information transparently and accurately with the effect of globalization. In addition to financial reports, enterprises provided information on the results of their activities to information users through environmental reports, social reports, management reports, triple bottom line system, corporate social responsibility reports and sustainability reports. Having more than one report belonging to an enterprise causes both the loss of time and confusion of information and makes national and international comparability and evaluability difficult. This situation led to the idea that enterprises should present their financial and non-financial information in a single report by combining them with an integrated approach. As a result of the studies, integrated reporting, which includes the social, environmental and economic indicators of the enterprises and aims to create value for the enterprises, has been accepted as a new approach in corporate reporting. In the light of this information, the starting point of our study is whether the integrated reports published by the enterprises have an effect on their financial performance. In this context, enterprises that are included in the BIST Index, that are in the integrated reporting database and that have published integrated reports for the last three sequential years were included in the study. Two of the enterprises found are in the cement sector and the other two are in the banking sector. Under the leadership of these sectors, two enterprises from abroad, which are in the cement and banking sector and have prepared integrated reports for the last three years were selected and compared. The ratio analysis method has been applied to the financial statements of the enterprises taken from the last 3-year integrated reports and the 3-year financial statements before the integrated report application, and the differences between the realized rates have been surveyed. At the same time, using structural equation modeling, it has been examined whether integrated reporting has an impact on the origin and sector of the enterprise. As a result of the analysis, it can be inferred that Turkish enterprises in the cement sector are ahead of foreign companies in both non-integrated reporting values and integrated report values, and the general situation of the sector is more successful in the years when non-integrated reports are published. It has been observed that, this has an effect on the economic situation of the sector. In the banking sector; before the integrated report, while there was no difference in terms of the status of both the enterprises and the sector, it was determined that foreign banks achieved more successful financial results with integrated reporting. In the structural equation modeling, no impact was detected in the cement sector, and it was concluded that banks' earnings per share increased with integrated reporting, their capital adequacy ratios increased, and the financing ratio had a significant effect on the capital adequacy ratio.