Integrated Reporting and Investment: How are They Related?

Authors

  • Bernadeta Susilo Martanti Accounting Department, BINUS Graduate Program - Master of Accounting, Bina Nusantara University Jl. Kebon Jeruk raya No. 27, Kebon Jeruk, Jakarta 11530, Indonesia
  • Dessy Astuti Hermanto Accounting Department, BINUS Graduate Program - Master of Accounting, Bina Nusantara University Jl. Kebon Jeruk raya No. 27, Kebon Jeruk, Jakarta 11530, Indonesia
  • Elin Noviyanti Accounting Department, BINUS Graduate Program - Master of Accounting, Bina Nusantara University Jl. Kebon Jeruk raya No. 27, Kebon Jeruk, Jakarta 11530, Indonesia
  • Windy Rizkika Andriany Accounting Department, BINUS Graduate Program - Master of Accounting, Bina Nusantara University Jl. Kebon Jeruk raya No. 27, Kebon Jeruk, Jakarta 11530, Indonesia

DOI:

https://doi.org/10.21512/tw.v21i1.5805

Keywords:

integrated reporting, integrated investor, mandatory regulation, voluntary regulation

Abstract

The research aimed to explore how integrated reporting potentially impact the investor decision within mandatory and voluntary regulation. The method used was exploration of arguments from several researchers, either from theoretical and empirical basis, or literature review.  The method of this qualitative research was dividing the literature into categories which in this research would be mandatory and voluntary regulations. The sub categories were divided by two countries which were Africa and The United States as research objects. The result and discussion were integrated reporting increases the value relevance of information produced by the company and underline the way companies create a value over the short until long term by informing business model, corporate strategy, and forecasting view. The result shows that Integrated Reporting will be more useful if the Government mandates the regulation like in Africa. It is considered that when Integrated Reporting potentially impacts the investors’ decision assured by professional services, these disclosures will be more accurate and reliable. A contribution for the government to create a clear regulation of the integrated report and provide an assurance service to assure the accuracy of information in the Integrated Report will be our expectation.

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Published

2020-02-11