Integrated reporting: An accounting disclosure tool for high quality financial reporting

By Athanasios Pavlopoulos, C. Magnis, G. Iatridis. Research In International Business and Finance, 2019

144 citations recorded by the source corpus.

Abstract This study examines the association between the level of the quality of integrated reporting (IR) disclosure and a firm’s market valuation. Employing data from IR firms during the years 2011 to 2015, we identify the association between firm performance and IR disclosure quality. Further, we examine the way in which the quality of IR disclosure improves the value relevance of summary accounting information (i.e., the market value of equity) and can create value. Specifically, we show the positive relation between firm performance and the quality of IR disclosure. Further, an examination shows that the level of the quality of IR disclosure is more significant when firms tend to exhibit a higher value relevance of summary accounting information (i.e., the book value of equity and earnings). Finally, more effective use of IR has resulted in abnormal stock returns being positively associated with earnings quality.

Subfields: Accounting, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/19dd9e546d260b8f4ee283e4d23f1dd0c0e6a24f