Forward-Looking Information Based on Integrated Reporting Perspective: Value Relevance Study in Indonesia Stock Exchanges | Chapter 05 | Emerging Issues and Development in Economics and Trade Vol. 3
The International Integrated Reporting
Council (IIRC) in 2013 has formulated the Integrated Report Framework.
Integrated reporting provides forward-looking information related to the
company's holistic picture, future targets and the relationship between financial
performance and non-financial performance. Indonesia does not require companies
to report integrated reporting, but many voluntary ones have provided partial
disclosures about aspects that are regulated in the integrated report
framework. This study aims to provide empirical evidence about the effect of
forward-looking disclosure on firm value. The research population is a
manufacturing company on the Indonesia Stock Exchange for the 2015 and 2016
annual reports. The sample is selected based on the availability of annual
reports accessed through the company's web and the Indonesia Stock Exchange.
The population is 144 manufacturing, and sample companies were 70 which was
collected for two years, so there were 140 firms’ years. The forward-looking measurement
is based on the disclosure index. GCG variables are used as control variables
because empirically GCG can affect the value of the company. The results of the
study showed that forward-looking disclosure has a significant effect on the
value of the company and can explain the 20.9% variation in the value of the
company.
Author(s) Details
Wiwik Utami
Universitas Mercu Buana,
Indonesia.
Putri Dwi Wahyuni
Universitas Mercu Buana,
Indonesia.
View Book: http://bp.bookpi.org/index.php/bpi/catalog/book/120
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