Integrated Reporting and Investor Clientele
Research drawn from 1,066 US companies practicing degrees of Integrated Reporting concluded that, “<IR> is associated with a more long-term investor base.”
The Harvard Business School research, led by George Serafeim, indicated that businesses that are on the journey towards Integrated Reporting, and are starting to efficiently communicate with investors about how they make value over time, are attracting more stable investment.
The report concluded, “<IR> is positively associated with percentages of shares owned by dedicated investors and negatively with percentages of shares held by transient investors.”
This suggests that “firms practicing <IR> not only attract dedicated investors but also become unattractive for transient investors”.