Trends in integrated reporting by JSE listed companies: an analysis of corporate governance disclosures concerning King IV

Abstract

With the ever-changing regulations in the corporate space, companies need to keep up with the changes. This includes the compliance with King Report on Corporate Governance which would be a mandatory requirement for JSE listed companies. The compliance has been made mandatory to encourage companies to be responsible corporate citizens and to provide users with information on how organizations generate wealth to allow for efficient decision-making. While compliance is mandatory, questions may be raised on whether the early adoption of the IR Framework was an attempt to remain legitimate in the global market. The purpose of this report is to analyse the trends in the extent of integrated reporting by top 100 JSE listed companies. The analysis will be performed concerning the recommended principles of King Report on Corporate Governance (King IV). The additional purpose is to determine whether there has been an improvement in the level of disclosures from 2016 to 2017 and from 2017 to 2018. A descriptive research methodology was used in which integrated reports of eighty JSE listed companies were examined and analysed to determine the level of disclosure in each year and to evaluate whether there had been significant changes in specific disclosures provided by these companies. The key findings show that there were overall level disclosures had improved over the three- year period. The results indicate a much-needed improvement in disclosures relating specifically to risk management processes, IT governance, diversity within the boards and the inclusion of duties and responsibilities carried out by both the board and its committees