Disclosure Quality under Integrated Reporting : A Value Relevance Approach

In the aftermath of the globalization first and of the financial crises then, the traditional approaches to reporting appeared outdated. In response, the Integrated Report (IR) has been proposed with the aim to increase the transparency, making more clear the interconnections between all areas of the firm business and its performance. Our analysis reveals that the IR actually creates value for investors, as adopting firms are reworded by the market, and increases the value relevance of earnings per share. Our results are robust to the geographical area, the firm dimension and the country legal system, providing new evidences on the efficacy of the IR as well as on the necessity to make it mandatory