Abstract
This dissertation examines the application of integrated reporting guidelines by four leading banks in South Africa and Australia. The primary objective is to perform a comparative analysis of how these banks adhere to the integrated reporting framework’s content elements and to determine which country demonstrates a higher quality of integrated reporting. The study addresses three key research questions: the extent of adherence to recommended guidelines by banks in South Africa and Australia, the comparative quality of integrated reporting, and the insights gained from this comparison regarding the usefulness of integrated reporting in the banking sector of two commonwealth countries in the Southern Hemisphere.
The 2008 financial crisis was a critical real-world problem. Previous studies have identified that the crisis was primarily caused by banks' failure to disclose essential non-financial information. To mitigate the risk of similar future occurrences, banks need to adopt more comprehensive reporting frameworks, such as integrated reporting, which provide a holistic view of their operations' financial and non-financial aspects.
A mixed-methods approach combined quantitative content analysis with qualitative case studies and comparative studies were used. The content analysis evaluated the selected banks' annual and integrated reports against the integrated reporting framework's guidelines. Quantitative content analysis involves statistical comparisons of integrated reports from South African and Australian banks. Therefore, comparative research methodology was incorporated. Qualitative content analysis examines the textual content of integrated reports for South African and Australian banks against the prescribed guidelines of the integrated reporting framework.
The findings reveal significant differences in adherence levels and reporting quality between South African and Australian banks, with South African banks generally demonstrating a higher quality of integrated reporting. The study provides valuable insights into regional variations, highlighting the influence of regulatory environments and cultural factors on reporting practices. These findings contribute to the broader understanding of integrated reporting in the banking sector and offer practical recommendations for banks and regulators to enhance reporting standards.