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Does integrated reporting quality matter to capital markets? Empirical evidence from voluntary adopters

  • This study examines the relevance of integrated reporting quality (IRQ) to capital markets. We investigate whether IRQ benefits capital market participants by improving a firm's information environment, using analyst earnings forecast accuracy as a proxy. Our study focuses specifically on companies that publish integrated reports on a voluntary basis. Based on a scoring model, we assess IRQ and its effects with data from 2015 to 2019 of 101 companies. The results indicate no significant relationship between IRQ and analyst earnings forecast accuracy. Thus, IRQ does not appear to improve a firm's information environment, at least not currently in a voluntary setting. Drawing on previous literature in the field, this study further concludes that integrated reporting (IR) in general has not yet reached its full potential in benefitting capital markets. Potential implications of our results are that the standard setters should work to improve the specificity and rigor of their guidelines, and analysts should become more involved in developing IR guidelines to make them more relevant to their information needs. IR seems to unfold its benefits better in mandatory settings, which could call for regulators to make IR mandatory.

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Metadaten
Author of HS ReutlingenLeukhardt, Luca; Charifzadeh, Michel
URN:urn:nbn:de:bsz:rt2-opus4-36526
DOI:https://doi.org/10.1002/csr.2285
ISSN:1535-3958
eISSN:1535-3966
Erschienen in:Corporate social responsibility and environmental management
Publisher:Wiley
Place of publication:Chichester
Document Type:Article
Language:English
Year of Publication:2022
Tag:forecast accuracy; forecast error; information environment; integrated reporting; integrated reporting quality; sustainability reporting; voluntary disclosure
Volume:29
Issue:5
Page Number:13
First Page:1482
Last Page:1494
PPN:Im Katalog der Hochschule Reutlingen ansehen
DDC classes:380 Handel, Kommunikation, Verkehr
Open Access?:Ja
Licence (German):License Logo  Creative Commons - CC BY - Namensnennung 4.0 International