<p>Integrated reporting (IR) has drawn significant attention from researchers over the past few years due to its potential to enhance transparency and provide a holistic view of an organization’s performance and value creation. The purpose of this study is to examine the practice of IR in the banking sector of Bangladesh and to investigate its association with CEO characteristics. Using a sample of 195 bank-years for the period 2018–2023, the study has conducted a content analysis to measure the practice of IR. Five proxies of CEO characteristics namely compensation, age, financial education, tenure and political association have been used. The findings show an increasing trend in the adoption of IR by Bangladeshi banks over the years. Underpinning the agency theory and upper echelons theory, the study found that CEOs with higher compensation and financial education enhances the practice of IR. However, CEO tenure and political affiliation are negatively related to IR. To ensure the robustness of the findings, the study has used two-step system GMM which confirmed the consistency of the results. The study suggests that firms should prioritize hiring CEOs with financial expertise and design compensation packages that incentivize the adoption of IR. Policymakers can use the findings to develop guidelines, specifically regarding appointment of financially expert and politically independent CEOs to foster the practice of IR and ensure transparency. The study makes a significant contribution to the field of IR research in the context of emerging economies, being a pioneer in exploring the relationship between CEO characteristics and IR practices.</p>

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CEO characteristics and integrated reporting: insights from the banking sector of an emerging economy

  • Raihan Sobhan,
  • Tasnim Homaira Tushi

摘要

Integrated reporting (IR) has drawn significant attention from researchers over the past few years due to its potential to enhance transparency and provide a holistic view of an organization’s performance and value creation. The purpose of this study is to examine the practice of IR in the banking sector of Bangladesh and to investigate its association with CEO characteristics. Using a sample of 195 bank-years for the period 2018–2023, the study has conducted a content analysis to measure the practice of IR. Five proxies of CEO characteristics namely compensation, age, financial education, tenure and political association have been used. The findings show an increasing trend in the adoption of IR by Bangladeshi banks over the years. Underpinning the agency theory and upper echelons theory, the study found that CEOs with higher compensation and financial education enhances the practice of IR. However, CEO tenure and political affiliation are negatively related to IR. To ensure the robustness of the findings, the study has used two-step system GMM which confirmed the consistency of the results. The study suggests that firms should prioritize hiring CEOs with financial expertise and design compensation packages that incentivize the adoption of IR. Policymakers can use the findings to develop guidelines, specifically regarding appointment of financially expert and politically independent CEOs to foster the practice of IR and ensure transparency. The study makes a significant contribution to the field of IR research in the context of emerging economies, being a pioneer in exploring the relationship between CEO characteristics and IR practices.