The impact of the level of integratedness of corporate reporting on the market value of European listed firms

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2018-07-03
Language
en
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A trend in corporate reporting, ascribable to the growing interest in the inter-linkage between financial and non-financial information, is integrated reporting. This thesis examined what the impact of the level of integratedness of corporate reporting on the market value of European listed companies is. The corporate governance vision and strategy data from Asset4 was used as a proxy for the level of integratedness of corporate reporting. Using 1082 European listed companies, the results indicate an insignificant negative relation between the level of integratedness of a corporate report and the market value of European listed companies. Furthermore, the results show a significant negative relation before the introduction of the IIRC framework and an insignificant negative relation after the introduction of the IIRC framework. The findings suggest that organizations cannot use the level of integratedness of a corporate report as a tool to increase their market value. However, there is some indication that the negative effect seems to be decreasing, a potential explanation for this is the introduction of the IIRC framework. The findings further indicate that the impact of integrated reporting is not as positive as expected from studies conducted in South-Africa, where it is mandatory to publish an integrated report.
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Faculteit der Managementwetenschappen
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