Integrated Reporting in the Banking Sector in Russia and other Markets - Problems of Preparation and Impact on Financial Results

The global financial crisis of 2007-2008 underscored the limitations of traditional financial reporting, prompting a shift towards more holistic and transparent approaches such as Integrated Reporting (<IR>). This paper investigates the development, challenges, and impact of Integrated Reporting in the banking sector, with a particular focus on Russia and comparative insights from South Africa and South Korea, as well as other countries. To addresses a significant gap in existing literature, particularly the lack of studies focusing on the impact of <IR> on the financial results in the banking sector of Russia and other markets, two novel indexes were developed: the Index of the Effectiveness of Six Capitals Use and its Disclosure, and the Index of the Quality of Integrated Reporting. Consequently, the research employs a case study method, analyzing data from 2017 to 2022 for Sberbank (Russia), JB Financial Group (South Korea), and NedBank (South Africa). Results of the case study using obtained indices revealed that <IR> quality and five capitals use do not drive higher financial results in the short term and longer observation period is needed to fully understand its effects. Overall, while <IR> has not shown a clear impact on financial results of the banks within the study period, the developed indices offer a new approach to evaluating <IR> implementation, which can be used by experts worldwide for assessing Integrated Reporting practices of the banks, as well as for further analysis on the topic.