Adherence to integrated reporting framework and performance of listed manufacturing companies in Ghana

Abstract

This study sought to investigate the degree of adherence to the integrated reporting framework and its effect on the performance of listed manufacturing companies in Ghana. The study employed the descriptive and causal research designs for the analysis after secondary data was drawn from the audited annual reports of ten (10) listed manufacturing companies observed from 2014 to 2020. The panel regression results were generated from the EViews version 12 software programme. The study employed content analysis of annual reports to identify the non-financial information disclosed. From the result, it was found that an integrated reporting framework has no significant influence on profitability. The result also revealed that sales growth, independent board of directors, assets quality, business sustainability, age general reporting guideline, governance index, audit firms, and liquidity statistically influence a firm’s profitability. Still, firm size does not significantly affect profitability. The study disclosed that the determinants of the integrated reporting framework included liquidity, firm age, sales growth, sustainability reporting, business sustainability, general reporting guideline and audit firm. It was further revealed that firm size, assets quality and independent board of directors are not determinants of IRF. Finally, the study finds that the size of the firm significantly influences financial performance. The study suggests that manufacturing companies should improve non-financial information, especially on strategies and resources allocation in their financial statements. It further recommended that to increase their profitability, it has to increase their liquid assets, sell more of their products or services (sale growth), adhere to the general reporting guidelines, engage on an independent board of directors, ensure assets quality and employ a governance index of improving performance.