The effect of ownership structure and integrated reporting on financial performance
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2019-08-19
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en
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This study examines the relationship between integrated reporting, ownership structure and financial performance. This is accomplished by providing empirical evidence on the relationship by investigating a sample of 90 European listed companies. The sample consists of 269 firm-year observations for the period 2015-2017. The results of the regression analyses show a positive and significant interaction effect between integrated reporting and ownership structure. This effect is established for both short-term and long-term financial performance indicating a complementary relationship. This effect is stronger for short-term financial performance compared to long-term financial performance. There is evidence for the proposed monitoring hypothesis as opposed to the contradicting expropriation hypothesis. Evidence shows that blockholders are better able to monitor management thereby decreasing the agency problem between capital providers and management.
Keywords: Integrated Reporting; ownership structure; ownership dispersion; blockholder; financial performance.
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Faculteit der Managementwetenschappen