Does the voluntary adoption of integrated reporting affect the value relevance of accounting information? Empirical evidence from Europe
Salvatore Loprevite,
Daniela Rupo and
Bruno Ricca
International Journal of Managerial and Financial Accounting, 2019, vol. 11, issue 3/4, 238-268
Abstract:
This study verifies whether the voluntary adoption of an integrated report in Europe under the framework is associated with the value relevance of summary accounting information. We compare a sample of European listed companies that publish Integrated Reports (IR-firms) under the framework with companies that do not publish it (NIR-firms). To analyse the association between market value (MV) and traditional accounting information (book value and earnings), we use multivariate regression linear models and generalised linear models (GLM). The results of our analysis show that the adoption of IR appears to strongly affect the value relevance of summary accounting information. For IR-firms, we find significant lower value relevance for earnings and slightly higher value relevance for book value, compared to NIR-firms. Additionally, our findings reveal that for both groups the level of investments on intangibles is positively associated to market value but with a significantly higher association for the IR-firms.
Keywords: integrated reporting; international integrated reporting framework; value relevance; accounting information; market effects; generalised linear models; GLM; framework; non-financial voluntary or mandatory reporting; agency theory. (search for similar items in EconPapers)
Date: 2019
References: Add references at CitEc
Citations: View citations in EconPapers (3)
Downloads: (external link)
http://www.inderscience.com/link.php?id=104131 (text/html)
Access to full text is restricted to subscribers.
Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:ids:injmfa:v:11:y:2019:i:3/4:p:238-268
Access Statistics for this article
More articles in International Journal of Managerial and Financial Accounting from Inderscience Enterprises Ltd
Bibliographic data for series maintained by Sarah Parker (informationadministrator5@inderscience.com).