Impact of Integrated Reporting on Firm value: Evidence from Listed Companies in Sri Lanka

Abstract

The study examines the impact of integrated reporting on firm value of listed companies in Sri Lanka. Integrated reporting increases the quality of information and provides more insight to generate value over time. Although integrated reporting is not a mandatory requirement to Sri Lankan companies, the number of companies adopting integrated reporting have been increased over the years. The sample comprises of 30 companies in the Colombo Stock Exchange selected based on their market capitalization for the period from 2015 to 2020. This research utilizes secondary data obtained from integrated reports issued by selected companies. The study used integrated reporting as the independent variable and firm value as the dependent variable. Integrated reporting was measured through an index representing eight IR content elements from the IIRC framework and firm value was measured using Tobin’s Q formula. Data were analyzed using descriptive statistics, correlation analysis and regression analysis using E –views software. Findings of this research useful to investors, business analysts, researchers, and companies to identify the significance of integrated reporting on firm.