Authors: Theodora Dimitriou, Andreas Koutoupis

Title: Does Integrated Reporting create value to investors? A critical review of the literature

Abstract

Integrated reporting (IR) represents an innovative approach to the corporate reporting initiative. Its essence conceptualizes the need for a holistic approach to business reporting that takes into consideration not only the needs of shareholders but also the worries of society as a whole. Although there has been a steady growth in empirical IR research, there is no review on the literature on the investors’ case for IR. This study reviews the literature on integrated reporting (IR) disclosure on analyst earnings forecast accuracy and firm value and provides a critical approach. In order to accomplish that, this study answers to research questions (RQ1): What is research on the impact of integrated reporting on earnings forecast accuracy and firm value? (RQ2) What is the focus and critique of this literature (RQ3) What is the future of research on this issue? We analyze the study in research themes and we discuss the results and future research in this field. Literature concludes that in general IR reporting is relevant to the market and investors seem to take under consideration relative reports. Our study underlines the importance of IR to the capital markets and provides insights to practitioners and policy makers for future initiatives regarding holistic reporting IR.