Disclosure of integrated reporting elements by industrial companies: evidence from Jordan

In most developing countries, integrated reporting disclosure is still a recent topic and voluntarily practiced. The new reporting provides a comprehensive framework for disclosures of information in companies' annual reports. Although the subject has been discussed in the literature since its release in 2013, empirical evidence on this topic is scarce especially from developing economies. In these countries, including Jordan, the disclosure practice is still debatable and voluntary. To date, only a small number of studies have examined the subject of integrated reporting disclosure at the global level. The present study applies the international integrated reporting framework and evaluates the disclosure level in the annual reports of Jordanian listed industrial companies. The study covers the period from 2014 to 2017. Data was gathered from the companies' annual reports and analyzed using content analysis. The results indicate wide variations in the current practice, where the companies provided a high level of disclosure for two reporting elements which are risks and opportunities, and the basis of preparation and presentation, while four of the reporting elements show disclosures at the medium level. On the other hand, the results were disappointing in terms of governance and outlook. This study contributes to the accounting disclosure literature by exploring the current state of integrated reporting in Jordan, a developing country. Also, the results provide new insights for the regulators in assisting and guiding companies to improve the disclosure practices. At the same time the study highlights the disclosures elements which deserve companies' attention and reflect the expectations of stakeholders in moving towards a global adoption of integrated reporting.