The State of Integrated Reporting in Namibia: Perspectives of Report Preparers

Abstract

The study aims to determine the perspectives of annual integrated report preparers for publicly traded companies in Namibia on the decision usefulness of those reports based on their preparation experiences and the challenges encountered in producing high-quality decision-useful integrated reports through interview of 12 NSX-listed integrated report preparers. Using thematic interpretative analysis, the usefulness of Namibian annual integrated reports was evaluated.

The results demonstrate a divide in Namibia between those who prepare annual integrated reports and those who receive them. Listed companies in Namibia may not meet the informational needs of their users, rendering their integrated reports ineffective for decision-making. The unwillingness of preparers to alter their compliance-heavy report preparation processes makes it challenging to develop an integrated thinking strategy. Despite these findings, the annual integrated reporting process is viewed as an improvement over Namibia's traditional reporting practices, with a focus on producing more balanced corporate reports that include social, governance, environmental, and sustainability performance measures to meet the needs of the various stakeholders.

The lack of IIRC framework awareness and demand for integrated reports from stakeholders may hinder Namibia's adoption. IIRC-defined superior corporate reporting, which combines financial and non-financial information, could boost Namibia's capital flows and the economic and social well-being of the Namibian society.

Keywords: integrated reporting, report preparers, decision usefulness, corporate reporting, Namibia

DOI: 10.7176/RJFA/15-7-01

Publication date: July 30th 2024