Serafeim (2015)
Serafeim, George. “Integrated Reporting and Investors Clientele.” Journal of Applied Corporate Finance, Spring 2015.
[From the Conclusion]
"IR is a recent reporting innovation that has gained traction in both the corporate and investor communities. In this article, I present the findings of my study of how the practice of IR affects the investor base of the firm. The main finding of my analysis is that companies that produce integrated reports show a clear tendency to have more long-term, 'dedicated' holders and fewer transient investors. Moreover, through the use of firm-fixed effects and lead-lag analysis, my study provides evidence that suggests a causal relationship between the corporate practice of IR and an investor base with longer- term shareholders. In support of such a causal relationship, my study shows that the relation between IR and investor base is stronger for companies with high growth opportunities, with no (or very limited) ownership by the founding family, for 'sin' companies (those subjected to strong social criticism), and for companies with a consistent IR practice."