Relative and Incremental Value Relevance of Accounting Information under the Integrated Reporting Approach: Evidence from South Africa

DOI

10.2991/apbec-18.2019.59How to use a DOI?

Keywords

Integrated reporting, value relevance, corporate reporting

Abstract

The current system of corporate reporting expects to convey effectively company information to the stakeholders regarding value creation for the short, medium, and long term. This study aims to investigate the effect of implementation of the integrated reporting (IR) approach on the value relevance of accounting information by observing the relative and incremental value relevance before and after implementation of IR. This empirical study was conducted using unbalanced panel data to ensure a wide range of the sample. The regression analysis was performed on 3.138 observations from 338 companies listed on the Johannesburg Stock Exchange (JSE) in 12 periods (six pre- and six post-IR periods). The financial data was collected from Datastreams Thomson Reuters. The results of regression show that accounting information has value relevance, thus supporting the view that the IR approach has a significant impact on the value relevance of accounting information in South African companies. This finding could help with the implementation of IR in many countries, both developed and developing, to ensure they use advanced corporate reporting models to support sustainability by implementing integrated thinking and action.

Copyright

© 2019, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Kenny Fernando
AU  - Ancella A. Hermawan
PY  - 2019/07
DA  - 2019/07
TI  - Relative and Incremental Value Relevance of Accounting Information under the Integrated Reporting Approach: Evidence from South Africa
BT  - Proceedings of the Asia Pacific Business and Economics Conference (APBEC 2018)
PB  - Atlantis Press
SP  - 421
EP  - 426
SN  - 2352-5428
UR  - https://doi.org/10.2991/apbec-18.2019.59
DO  - 10.2991/apbec-18.2019.59
ID  - Fernando2019/07
ER  -