Integrated Reporting in Southeast Asia: Does Value Creation Work?

Arie  Pratama; Winwin  Yadiati; Nanny Dewi  Tanzil; Jadi  Suprijadi

doi:10.36941/ajis-2021-0123

Authors

Arie Pratama Department of Accounting, Faculty of Economics and Business, Padjadjaran University, Kabupaten Sumedang, Jawa Barat 45363, Indonesia
Winwin Yadiati Department of Accounting, Faculty of Economics and Business, Padjadjaran University, Kabupaten Sumedang, Jawa Barat 45363, Indonesia
Nanny Dewi Tanzil Department of Accounting, Faculty of Economics and Business, Padjadjaran University, Kabupaten Sumedang, Jawa Barat 45363, Indonesia
Jadi Suprijadi Department of Statistics, Faculty of Mathematics and Natural Science, Padjadjaran University, Kabupaten Sumedang, Jawa Barat 45363, Indonesia

DOI:

https://doi.org/10.36941/ajis-2021-0123

Keywords:

integrated reporting, firm characteristics, corporate governance, media exposure, firm value

Abstract

This study describes the factors affecting the quality of integrated reporting (IR) disclosure and how the disclosures affect firm value. This study employed quantitative methods with secondary data. This study sample includes 1,900 firms from 2016 to 2018. Descriptive statistics, cluster analysis, and structural equation modeling path analysis were used to describe the development. This study showed that the IR implementation in five countries currently has an adequate score. Hypothesis testing showed that three factors influenced the size of IR disclosures and the disclosures influence the firm value. This study implies that although IR in the current and future will be a role model for corporate reporting, Southeast Asian firms still need to strengthen the quality of IR. This study contributes to the current development and description of IR, which is limited because of its recent introduction, in five countries: Indonesia, Malaysia, Philippines, Singapore, and Thailand.

Received: 28 April 2021 / Accepted: 15 July 2021 / Published: 5 September 2021