Conceptualization of the Adoption of Integrated Reporting in Sri Lanka: Use of an Extended Theory of Planned Behaviour

Posted: 6 Dec 2019

See all articles by R Herath

R Herath

Department of Accounting, Faculty of Management Studies and Commerce, University of Sri Jayewardenepura

T Cooray

Department of Accounting, Faculty of Management Studies and Commerce, University of Sri Jayewardenepura

A.D. Nuwan Gunarathne

University of Sri Jayewardenepura, Sri Lanka

DN Samudrage

Department of Accounting, Faculty of Management Studies and Commerce, University of Sri Jayewardenepura

Samanthi Senaratne

University of Sri Jayewardenepura - Department of Accounting

KH Lee

Griffith Business School, Griffith University, Australia

Date Written: December 3, 2019

Abstract

The widespread use of Integrated Reporting (IR) as a new corporate reporting model has given rise to a strand of literature that explores its drivers from various levels. While macro-level and internal organizational drivers have been commonly researched, how the managers’ perceptions and attitudes influence IR at a micro-level is largely unexplored. This is important as the role played by its senior management as corporate decision-makers either help or hinder IR adoption unlike other forms of voluntary corporate reporting practices. In order to address this gap, this study develops a conceptual model to examine how the managers’ behaviour-based factors influence the intention to adopt IR by corporate entities. The theory of planned behaviour is extended with the upper echelon theory with a view to providing a theoretical lens to understand how the managers’ orientation moulds their beliefs regarding IR, which will in turn positively influence their intention to prepare integrated reports and consequently prepare reports. The conceptual model suggests that the top managers’ level of education and experience impact their behavioural, normative and control beliefs which create attitudes, subjective norms and perceived behavioural controls. These belief-based factors will eventually generate an intention to adopt IR and resulted behaviour of preparing IR.

Keywords: behaviour-based factors, decision making, integrated reporting, theory of planned behaviour, upper echelons theory

Suggested Citation

Herath, R and Cooray, T and Gunarathne, A.D. Nuwan and Samudrage, DN and Senaratne, Samanthi and Lee, KH, Conceptualization of the Adoption of Integrated Reporting in Sri Lanka: Use of an Extended Theory of Planned Behaviour (December 3, 2019). Proceedings of the 6th International Conference on Multidisciplinary Approaches (iCMA) 2019 | Faculty of Graduate Studies, University of Sri Jayewardenepura, Available at SSRN: https://ssrn.com/abstract=3497368

R Herath

Department of Accounting, Faculty of Management Studies and Commerce, University of Sri Jayewardenepura ( email )

Sri Lanka

T Cooray

Department of Accounting, Faculty of Management Studies and Commerce, University of Sri Jayewardenepura ( email )

Sri Lanka

A.D. Nuwan Gunarathne

University of Sri Jayewardenepura, Sri Lanka ( email )

Nugegoda
Gandodawila
Gangodawila, Nugegoda 10250
Sri Lanka

DN Samudrage (Contact Author)

Department of Accounting, Faculty of Management Studies and Commerce, University of Sri Jayewardenepura ( email )

Sri Lanka

Samanthi Senaratne

University of Sri Jayewardenepura - Department of Accounting ( email )

Nugegoda

KH Lee

Griffith Business School, Griffith University, Australia ( email )

170 Kessels Road
Nathan, Queensland QLD 4111
Australia

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