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The impact of internal control, external assurance, and integrated reports on market value

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  • Graham Gal
  • Orhan Akisik

Abstract

It is generally assumed that the credibility of a firm's disclosure is enhanced when there is an independent review. This is the basis for the requirement that an independent audit firm attest to the veracity of financial statements. With the passage of Sarbanes‐Oxley, publicly‐traded North American firms must include a statement about the quality of their internal control system in their financial statements. While the audit of the statements of financial position may be considered to pertain only to that information, the internal control system has a pervasive effect. Therefore, its audit may also impact systems not directly related to financial reporting. Integrated reports combine financial and non‐financial information to provide an overall view of firm's performance. Using data from Compustat North America and GRI, this study shows a positive impact of internal control systems and integrated reports on market value.

Suggested Citation

  • Graham Gal & Orhan Akisik, 2020. "The impact of internal control, external assurance, and integrated reports on market value," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 27(3), pages 1227-1240, May.
    • Handle: RePEc:wly:corsem:v:27:y:2020:i:3:p:1227-1240
    DOI: 10.1002/csr.1878
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    2. Sumaia Ayesh Qaderi & Belal Ali Abdulraheem Ghaleb & Abdulwahid Ahmed Hashed & Turki Raji Alhmoud & Hasnah Kamardin, 2023. "Audit Committee Leadership Attributes and CSR Reporting: Evidence from Jordan," SAGE Open, , vol. 13(3), pages 21582440231, August.
    3. Xuesen Cai & Xiaowei Song, 2024. "Towards sustainable environment: Unleashing the mechanism between green finance and corporate social responsibility," Energy & Environment, , vol. 35(2), pages 986-1003, March.
    4. Jannik Gerwanski, 2020. "Does it pay off? Integrated reporting and cost of debt: European evidence," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 27(5), pages 2299-2319, September.
    5. Paula Monteiro, Albertina & Vale, Joana & Leite, Eduardo & Lis, Marcin & Kurowska-Pysz, Joanna, 2022. "The impact of information systems and non-financial information on company success," International Journal of Accounting Information Systems, Elsevier, vol. 45(C).
    6. Patrick Velte, 2022. "Archival research on integrated reporting: a systematic review of main drivers and the impact of integrated reporting on firm value," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 26(3), pages 997-1061, September.
    7. Bablu Kumar Dhar & Iman Harymawan & Sabrina Maria Sarkar, 2022. "Impact of corporate social responsibility on financial expert CEOs' turnover in heavily polluting companies in Bangladesh," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 29(3), pages 701-711, May.
    8. Valentina Minutiello & Patrizia Tettamanzi, 2022. "The quality of nonfinancial voluntary disclosure: A systematic literature network analysis on sustainability reporting and integrated reporting," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 29(1), pages 1-18, January.
    9. Wesley Friske & Atanas Nik Nikolov & Todd Morgan, 2024. "Making the grade: An analysis of sustainability reporting standards and Global Reporting Initiative adherence ratings," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 31(3), pages 2098-2108, May.

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