Determinants and consequences of integrated reporting disclosures of non-financial listed firms in an emerging economy

Abstract

Purpose This study aims to examine the determinants and consequences of integrated reporting (IR) disclosures of listed non-financial firms in an emerging economy. Design/methodology/approach This study uses data from 39 listed non-financial firms that had adopted IR disclosure framework in Sri Lanka for the period from 2011 to 2018. Firm size, growth opportunity, profitability and firm age are considered significant determinants of IR disclosure, while their consequences are measured in terms of share price, Tobin’s Q, return on assets and return on equity. The authors used the results of the correlation and panel regression analyses to draw this study’s conclusions. Findings This study finds that firm size and age are the significant determinants of IR disclosure, which is consistent with this study’s expectations. Considering the consequences of IR disclosure, only share price and Tobin’s Q show significant results as per the panel regression analyses. Practical implications The findings of this study would be useful in the decision-making processes of existing and prospective investors, regulators, policymakers and society at large. Further, the findings of this study communicate the benefits of this new reporting paradigm in shaping their disclosures in the annual corporate reporting process. Originality/value Although existing studies attempted to examine the determinants of IR disclosure and its consequences as isolated studies, this study provides new insights by merging these two aspects into a single study and consider several determinants and consequences as well.