Sustainability Reporting to Integrated Reporting: The Relationship between Total Integrated Reporting Disclosure Quality (TIRDQ) and Firm Performance
Mira Susanti Amirrudin1, Mazni Abdullah2, Zakiah Saleh3
1Mira Susanti Amirrudin *, Faculty of Accountancy, Universiti Teknologi MARA, Shah Alam,Selangor, Malaysia.
2Mazni Abdullah, Faculty of Business & Accountancy, Universiti Malaya, Kuala Lumpur, Malaysia.
3Zakiah Saleh, Faculty of Business & Accountancy, Universiti Malaya, Kuala Lumpur, Malaysia.
Manuscript received on February 10, 2020. | Revised Manuscript received on February 20, 2020. | Manuscript published on March 30, 2020. | PP: 1780-1784 | Volume-8 Issue-6, March 2020. | Retrieval Number: E4905018520/2020©BEIESP | DOI: 10.35940/ijrte.E4905.038620
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© The Authors. Blue Eyes Intelligence Engineering and Sciences Publication (BEIESP). This is an open access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/)
Abstract: In 2013, the International Integrated Reporting Council (IIRC) calls the organisation to prepare its annual report following the IR Framework for a better reporting of financial and non-financial information and enable various users of the annual report to understand how the company creates its value. Considering the new implementation of IR, research should analyse the content of IR disclosures and the impact of reporting annual report based on IR framework 2013 towards the company’s performance or value. It is important to emphasise that an IR does not merely combine two reports as one, but it is a way of communicating to various stakeholders about company’s performance, strategy, governance and its external environment. Using the data of 360 firm-year observations of IR companies, this study examines the quality of IR by developing TIRDQ and identifies if there is any relationship between TIRDQ and firm performance. The finding provides evidence that companies preparing high-quality IR report show a significant positive relationship with firm performance. This research contributes by presenting empirical evidence about the benefits of IR Framework adoption. The TIRDQ score from this study will be necessary for IR preparers, policymakers and standard setters to assist in evaluating the capacity of IR as a tool for enhancing corporate reporting.
Keywords: Integrated Reporting, Disclosure Quality, Firm performance
Scope of the Article: Quality Assurance Process, Standards, And Systems.