Do firms that perform well report differently compared to those that perform badly? Impression management in integrated reporting

Purpose This paper aims to investigate whether managers use impression management through the presentation of non-financial information in an integrated reporting setting. Design/methodology/approach The authors performed experiment with experienced professional controllers and part-time students enrolled executive master’s degree finance control at universities Netherlands. In this experiment, we manipulated financial performance test if present differently based on firm’s performance. Findings study found that is not applied by including or excluding key indicators (KPIs) report, but using more prominent forms for positive non-prominent ones negative However, form decreased when firms’ was positive. instance, noted statistically significantly often decided poor a format comparison who were aware Research limitations/implications A limitation focused only two strategies: opportunistic/under-reporting form. analysis shows mainly seems occur format. Future research could other strategies Practical implications results are importance users reports, because it will provide insight into firms truly transparent their reports. Furthermore, theoretical implication relevant regulatory authorities, sheds light different used influence positively negatively performing KPIs decisions preparers Originality/value Therefore, study, add prior literature investigating concept More specifically, perform focus (the under-reporting) setting link firm