Econometric model for quality evaluation of integrated reporting

Abstract

The article considers the issues of evaluating the quality of integrated reporting in economic entities through using an econometric model. It is proved that the econometric model developed for monitoring the quality of integrated reporting is an effective tool for evaluation. Therefore, the subject matter of the article is an econometric model for quality evaluation of integrated reporting, and the study object is the quality of integrated reporting. Accordingly, the research objective is to develop an econometric model for quality evaluation of integrated reporting.

The achievement of the objective requires solving the following tasks: 1) to establish a criterion for developing an econometric model for quality evaluation of integrated reporting;

2) to analyse changes of indicators, which affect the quality of integrated reporting; 3) to develop a correlation matrix for the connection of criteria included in integrated reporting;

4)       to determine how indicators, which are included in integrated reporting, affect its quality; to analyse the outcomes of developing an econometric model for quality evaluation of integrated reporting.

The proposed methods used for developing an econometric model for quality evaluation of integrated reporting in economic entities are as follows: analysis, synthesis, induction, deduction, abstraction, idealization, generalization, and modeling. The theoretical framework and further elaboration of practical steps towards quality evaluation of integrated reporting through using an econometric model is relevant and important for users of such reporting. The results of international annual competitions on quality evaluation of integrated reporting in European economic entities and enterprises of South Africa are presented. Introducing an econometric model for quality evaluation of integrated reporting is of particular importance for countries in transition. The study proposes approaches for quality evaluation of integrated reporting through using an econometric model. The obtained findings serve as a guide for setting new standards of integrated reporting in entities. In entities, the findings might be used to prepare, submit and make public reporting.

In conclusion, the paper outlines future prospects which are aimed at using three more criteria for developing an econometric model of quality evaluation of integrated reporting, namely: 1) disclosure of information on performance in sustainable development; 2) compliance with the recommendations of the International Integrated Reporting Council; 3) interaction between interested parties.