Value Creation Practice of Integrated Reporting: A Study on Non-Bank Financial Institutions in Bangladesh ()
ABSTRACT
Economy of Bangladesh is now on the
way of developed country. Non-Bank Financial Institution (NBFI) is major contributor partner in this road. NBFIs provide multiple
alternatives to transform an economy’s savings into capital investment. This
study is conducted on 07 NBFIs companies out of 23 companies listed in Dhaka
Stock Exchange (DSE). The aim of this research is to examine the application of
value creation through Integrated Reporting (IR) in NBFIs sector of Bangladesh.
A frequency of disclosure index is developed based on the International Integrated
Reporting Council (IIRC) framework, 2013. The results show that, the overall level
of application of value creation through IR is not at satisfactory level in
NBFIs sector of Bangladesh. That is only 60% of value creation information
available to entities stakeholders and still 40% of IIRC standard is not reflected in the annual reports of the among the sample firms. The
study also found that, level of value creation disclosure of four sample entities out of seven sample
entities is reported below to overall level of disclosure. IDLC Finance
and Lanka Bangla Finance have been awarded for best presented of IR in 2020 by
The Institute of Chartered Accountants of Bangladesh (ICAB). It is also
evidenced in this study that, highest level of value creation information is
disclosed by IDLC Finance Ltd. and Lanka Bangla Finance Ltd. The results also
show that, the most of the items of IRCVDI were disclosed in the Chairman’s
Report, Director’s Report, and Corporate Governance Report and in the Notes to
the Financial Statements.
Share and Cite:
Shahria, G. (2022) Value Creation Practice of Integrated Reporting: A Study on Non-Bank Financial Institutions in Bangladesh.
Open Journal of Accounting,
11, 42-56. doi:
10.4236/ojacct.2022.111003.