Integrated Reporting Disclosure in Annual Report
Corresponding Author(s) : Rita Wijayanti
Prosiding International Conference on Sustainable Innovation (ICoSI),
Vol. 3 No. 2 (2023)
Abstract
Introduction – Integrated reporting (IR) as a new reporting paradigm that describes the creation of organizational value has several aspects that affect its implementation, including the ownership structure. Purpose – This study aims to examine the determinants and consequences of integrated reporting (IR) disclosures of LQ45 firms in Indonesia. Methodology/Approach – This study uses data from 27 listed LQ45 firms that had adopted IR disclosure framework in Indonesia for the period from 2018 to 2021. Three types of ownership (managerial, institutional, and concentrated) are considered significant determinants of IR disclosure (IRD), while their consequences are measured in Tobin’s Q. The authors used the results of the correlation and panel regression analyses to draw this study’s conclusions. Findings – After controlling for factors such as firm size, profitability, and leverage, data analysis revealed that institutional ownership and concentrated ownership had a significant relationship with IRD. However, there was no correlation between IRD and firm value. Originality/ Value/ Implication – This study provides new insights into the determinants and consequences of IR in a single study. The findings communicate the benefits of this new reporting paradigm in shaping their disclosures in the annual corporate reporting process.
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