Authors: Andreas Delegos, Petros Kalantonis

Title: Does Integrated Reporting Enhance the Value Relevance of Information? Evidence of European companies in energy sector

Abstract

The research has been conducted on a sample of European companies in energy sector with the aim to investigate whether the adoption of the Integrated Reporting (IR) affects the value relevance of summary accounting information . Our study can be seen as a response to the recent calls for a closer investigation of the usefulness of the new reporting trend for investors. To do so, we utilize a sample of 20 european companies  in energy sector  that voluntarily publish an integrated report and  20 firms in the same sector that have not adopted IR and employ a linear price- model which associates a firm’s market value of equity with its book value of equity and earnings.

Using a comprehensive disclosure checklist, 20 integrated reports and 20 firms in the same sector that have not adopted IR were content-analyzed, and then we assessed methodological aspects of the OLS, WLS, fixed effect and random effect in order to evaluate the value relevance using the Ohlson’s equation.