The Value Relevance of Business Model Disclosure Quality in Integrated Reports

Authors

  • Aneetha Sukhari School of Accounting, University of Johannesburg, Johannesburg, South Africa https://orcid.org/0000-0003-0951-2523
  • Daniël Coetsee School of Accounting, University of Johannesburg, Johannesburg, South Africa https://orcid.org/0000-0003-0140-0316
  • Abejide Ade-Ibijola Johannesburg Business School, University of Johannesburg, Johannesburg, South Africa

DOI:

https://doi.org/10.54337/jobm.v13i1.9781

Abstract

Purpose: Despite the vast array of literature on integrated reporting, there is scant empirical evidence on the value relevance of the specific content elements of integrated reports. This paper investigates whether a specific content element of integrated reports, namely, business model disclosure quality influences the share price of South African listed companies. Business model disclosure was selected because it is integral to all stakeholders in understanding companies’ value creation processes to make informed decisions.

Design/Methodology/Approach: The value relevance was tested using the Ohlson (1995) Model through the application of panel data. A new proxy was used for the “other information” variable in the Ohlson (1995) Model for business model disclosure. Two scenarios were evaluated: one sample included profit-making and loss-making companies (350 observations) and another sample of profit-making companies (260 observations) for five years from 2016 to 2020.

Findings: The results for both scenarios indicated that the quality of business model disclosure had no effect on the share price of South African listed companies.

Originality/Value: The paper makes four contributions to the existing literature. Firstly, analysing the value relevance of one specific component of integrated reports, namely, business model disclosure. Secondly, using a new a proxy for business model disclosure to incorporate into the Ohlson (1995) Model. Thirdly, the paper provides empirical evidence on the value relevance of one of the critical elements of integrated reports of companies that have a mandatory requirement to publish integrated reports. Fourthly, two samples were analyzed: one sample of profit-making and loss-making companies and another sample of profit-making companies.

 

Author Biographies

Aneetha Sukhari, School of Accounting, University of Johannesburg, Johannesburg, South Africa

Dr. Aneetha Sukhari is a senior lecturer in the Department of Auditing at the University of South Africa. She is a Chartered Accountant (SA) and holds a Master’s degree in Commerce from the University of Pretoria, as well as a PhD in Accounting from the University of Johannesburg. Her research interests include integrated reporting, the incorporation of artificial intelligence in education, and natural language processing techniques.

Daniël Coetsee, School of Accounting, University of Johannesburg, Johannesburg, South Africa

Prof Daniël Coetsee is a Chartered Accountant and a retired professor in accounting at the University of Johannesburg, South Africa. His research interest is financial reporting.

Abejide Ade-Ibijola, Johannesburg Business School, University of Johannesburg, Johannesburg, South Africa

Professor Abejide Ade-Ibijola is a Full Professor of Artificial Intelligence and Applications at the Johannesburg Business School, University of Johannesburg, and a Distinguished Visiting Professor at Woxsen University (India) and the University of Kigali (Rwanda). With a PhD in Computer Science (Artificial Intelligence) from the University of the Witwatersrand, he is NRF-rated and globally recognised for his work in rule-based AI, serious games, applied AI, and algorithm design, with notable invited talks at Oxford, Cornell, and the U.S. National Academies.

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Published

05-05-2025

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Vol. 13 No. 1 (2025): Open Issue

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