Work

Does voluntary integrated reporting reduce information asymmetry? Evidence from Europe and Asia

Year: 2020

Type: article

Abstract: The purpose of this research is to examine the effect of voluntary integrated reporting on information asymmetry in European and Asian firms and investigate size as a moderator variable to this relationship. Using a final sample of 94 firms in Europe and Asia that published integrated reports in 2016, the Ordinary Least Square is then performed to analyze the data on quarterly basis. The quarterly analysis is used to look at the relevance of accounting information decline as the time lag increases. The results show that there is an insignificant relationship between integrated reporting quality and information asymmetry which is captured by spread. In addition, the insignificant effect of size to moderate this relationship is also found. These results are supported by additional analysis. This research contributes to the existing debate about whether integrated reporting affects the market, particularly information asymmetry. To the best of the authors' knowledge, this is the first study to examine the effect of integrated reporting quality on the market on a quarterly basis.

Source: Heliyon

DOI: 10.1016/j.heliyon.2020.e05602

Authors: Dewi Sriani, Dian Agustia

Institution: Universitas Airlangga

Language: English

Topic: Corporate Social Responsibility Reporting

Subfield: Strategy and Management

Field: Business, Management and Accounting

Domain: Social Sciences

Open Access status: gold

Estimated APC paid: $1,750

Funder: Universitas Airlangga