Disclosure of nonfinancial information in integrated reporting: the Brazilians professionals investors's perspective

ABSTRACT

Purpose This study aims to investigate the nonfinancial information related to capitals (intellectual, human, social and relationship, and natural) demanded by professional investors in their decision-making process, which can improve the usefulness of integrated reporting for this target audience. Design/methodology/approach A Systematic Literature Review in the Scopus, Web of Science and Google Scholar databases enabled the identification of information demanded by professional investors. This information was presented to experienced Brazilian investors participating in a focus group to align the theory on this topic with professional practice. Findings The results allow us to conclude that the focus group participants' perception is aligned with the international literature, both in the importance given to most of the nonfinancial information items identified and in the lack of interest in using integrated reporting in investment decisions. Nonetheless, the general perception of the focus group is not aligned with the literature procedures in terms of social and environmental information. Research limitations/implications A study with a larger scope and the adoption of other approaches can contribute to broaden the understanding of the perspectives of professional investors in Brazil, as well as in other regions. Practical implications The authors provide evidence that contributes to discussions about the information to be disclosed in integrated reports. Their results are useful to legislators, regulators, report preparers and investors. Originality/value The authors investigate the information demanded by professional investors in their decision-making process aiming to fill the literature gap relating the determinants of the integrated reporting disclosure and what is demanded by this target audience as a minimum content to be reported. As an additional result they offer interesting contributions to the literature providing reflections on nonfinancial information which have become important for Brazilian investors as from the COVID-19 pandemic.