The Effect of Integrated Reporting Disclosure on Firm Value: An Empirical Study on Companies LQ45

Marita Marita, Sri Astuti, Sucahyo Heriningsih

Abstract


The purpose of this study is to examine the extent to which LQ45 companies in the Indonesia Stock Exchange in submitting integrated reports and analyzing value creation from the integration reports submitted by the company. By using the company object LQ45, because this company is an established company, and all of them already have a good information system, so that they are able to present and disclose more information, especially information on integrated reporting elements.

Based on the results of statistical tests, it shows that element 3 of the business model, element 5 of strategy and resource allocation, element 6 of company performance, and element 7 related to information in the form of challenges and uncertainties have an effect on firm value. While the variable element 1 summary about the organization and its external environment, element 2 corporate governance, element 4 risk and company opportunities, and element 8 the basics of presenting company disclosure statistically do not affect firm value. This means that not all components in integrated reporting can affect firm value. This research can contribute in providing detailed information both financial and non-financial information of the company in creating value, and is useful for users of financial statements.


Keywords


integrated reporting, firm value

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DOI: http://dx.doi.org/10.52155/ijpsat.v23.2.2343

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