What makes organizations so similar? We contend that the engine of rationalization and bureaucratization has moved from the competitive marketplace to the state and the professions. Once a set of organizations emerges as a field, a paradox arises: rational actors make their organizations increasingly similar as they try to change them. We describe three isomorphic processes-coercive, mimetic, and normative—leading to this outcome. We then specify hypotheses about the impact of resource centralization and dependency, goal ambiguity and technical uncertainty, and professionalization and structuration on isomorphic change. Finally, we suggest implications for theories of organizations and social change.

The iron cage revisited: Institutional isomorphism and collective rationality in organizational fields (Chinese Translation)

The International Integrated Reporting Council's Framework identifies two goals for integrated reporting: improved information for outside providers of financial capital and better internal decision making. We extend prior research that finds a positive association between integrated report quality (IRQ) and firm value by examining two channels through which this association may arise--a capital market channel and a real effects channel. To conduct these tests, we disaggregate firm value into three components: liquidity, cost of capital, and expected future cash flows. Using data from South Africa where integrated reporting is mandatory and an IRQ measure based on proprietary EY data, we find a positive association between IRQ and liquidity, which supports the capital market channel. We find no evidence of a relation between IRQ and cost of capital. We also find a positive association between IRQ and expected future cash flows. Because this association could reflect better investor cash flow forecasts--a capital market effect, better internal decisions--a real effect, or both, we attempt to distinguish these explanations. We find higher IRQ is (not) associated with higher realized future operating cash flows (greater analyst target price forecast accuracy), and is associated with less over- and under-investment. These findings support the real effects channel. Together, our findings are consistent with integrated reporting achieving its dual objective of improved external information and better internal decisions.

The Economic Consequences Associated with Integrated Report Quality: Capital Market and Real Effects

Using a sample of 2,200 US listed firm year observations (2001-2007)this study shows a positive (negative) relation between female participation in corporate boards and analysts' earnings forecast accuracy (dispersion), after controlling for earnings quality, corporate governance, audit quality, stock price informativeness and potential endogeneity. Our findings are important as they suggest that board diversity adds to the transparency and accuracy of financial reports such that earnings expectations are likely to be more accurate for these firms.

Gender-diverse boards and properties of analyst earnings forecasts

PurposeThe purpose of this study is to examine the extent and impact of gender diversity and intellectual capital on compliance with Global Reporting Initiative (GRI) sustainability reporting standards by Uganda manufacturing companies.Design/methodology/approachData were collected from manufacturing firms in Uganda using a questionnaire survey to find out their perception of compliance with the GRI standards. Data were analyzed using statistical package for social sciences, Microsoft Excel and smart partial least squares structural equation modeling (PLS–SEM).FindingsThe results indicate that on average, manufacturing firms in Uganda comply with GRI sustainability reporting standards to the extent of 59%. The results further indicate that manufacturing companies comply more with the GRI 200 (economic performance disclosures) to the extent of 63% as compared with 55% for GRI 300 (environmental performance disclosures) and 58% for GRI 400 (social performance disclosures). The results also indicate that intellectual capital has a significant impact on the GRI-based sustainability performance disclosures in Uganda. However, board gender diversity has no significant effect. In terms of the control variables, only firm size is significant, while firm age, capital structure and auditor type are not.Originality/valueThis study provides first time evidence of the extent of compliance with the GRI sustainability reporting standards using evidence from Uganda – an African developing country. This study widens the understanding of the usage of GRI standards in the preparation of sustainability reports by manufacturing firms in an emerging economy. This study also provides first-time evidence on the role of gender diversity and intellectual capital in GRI-based sustainability performance disclosures using evidence from Uganda's manufacturing sector.

Sustainability performance disclosures: the impact of gender diversity and intellectual capital on GRI standards compliance in Uganda


Purpose
The purpose of this study is threefold: first, to examine among the board role performance attributes, which ones are critical for sustainability reporting practices; second, to establish the relationship between the overall board role performance and sustainability reporting practices; and third, to establish the relationship between board role performance and the three dimensions of sustainability reporting practices.


Design/methodology/approach
This study is correlational as it aims to establish relationships. Data were collected within a period of one year. Usable questionnaires were received from 48 financial services firms in Uganda.


Findings
On average, financial services firms in Uganda follow the Global Reporting Initiative sustainability reporting standards to the extent of 64%. The study results also indicate that board role performance is significantly associated with sustainability reporting practices. Board role performance is more associated with social sustainability reporting than environmental and economic sustainability reporting. In terms of board roles, service role is more associated with the sustainability reporting practices than the control and strategic role of the board.


Practical implications
The board has to provide the necessary support to management by passing decisions aimed at improving sustainability reporting practices and providing the necessary resources such as budgets for training of staff in sustainability reporting standards. Policymakers may require companies to prepare sustainability reports annually.


Originality/value
This study provides insights on the initial understanding of the link between board role performance and sustainability reporting practices. This study sheds more light on the relationship between board role performance and the dimensions of sustainability reporting. The study further enlightens the academic community and practice on which board roles are critical for enhanced sustainability reporting. This study therefore posts that it is no longer a matter of having board members but, rather, the role these board members play.


Board role performance and sustainability reporting practices: managerial perception-based evidence from Uganda


Purpose
This paper aims to examine the factors influencing the level of disclosures of sustainability (SR) and integrated report (IR) information in a developing country context, with particular reference to Kenya.


Design/methodology/approach
The study uses a panel data set of 419 firm-year observations of listed companies in Kenya covering the period 2010 through 2018. Data are collected from the annual reports and analysed using a generalized estimations equation model.


Findings
The results reveal that there is momentum towards newer reporting frameworks in Kenya with substantial IR and SR disclosures in their annual reports. The results also show that level of SR and IR disclosures is influenced by both agency-related factors (board gender diversity, audit committee independence, block ownership and the presence of foreign ownership). Additionally, institutional-related factors (regulatory pressure and promotional efforts of regulatory and professional bodies [reporting excellence awards]) influence the disclosures.


Practical implications
The results highlight that initiatives such as those led by the regulatory and professional bodies in Kenya are effective in motivating companies to enhance disclosures. Thus, regulators and professional bodies might need to continue and even intensify their efforts. These results have implications for further research as they show that SR and IR disclosures are influenced by similar factors.


Social implications
The study has the potential to contribute to the ongoing initiatives and discussions on the adoption of IR by firms in Africa as spearheaded by the African Integrated Reporting Council.


Originality/value
To the best of the knowledge, the study is, perhaps, the first to examine both SR and IR disclosures at the same study allowing comparison of the extent and drivers of the two disclosures. Moreover, examining the institutional-related factors in a single country has not been done in prior literature, and so this is an innovation.


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Robert Mudida

Papers

Agency and institutional related factors and the heterogeneity of sustainability and integrated report information disclosures in Kenya