The impact of integrated thinking on firm value: An international perspective

This paper examines how integrated thinking contributes to value creation and reduces misstatements in non-financial disclosures. Leveraging textual analysis on an international sample of 272 firms from 2013 to 2022, the study finds that integrated thinking is significantly and positively associated with both financial and non-financial value creation. Moreover, integrated thinking is shown to reduce misstatements in non-financial disclosures. Mediation analysis indicates that non-financial value creation acts as a positive mediator, whereas misstatements function as a negative mediator, jointly mediating the relationship between integrated thinking and financial value creation. The results are robust across alternative model specifications and after accounting for potential endogeneity. These findings have important policy implications for regulators aiming to enhance the reliability of sustainability reporting. For practitioners, the study highlights the strategic value of adopting integrated thinking frameworks—not only to improve long-term performance but also to strengthen the credibility and effectiveness of non-financial disclosures in stakeholder communication.