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The Effect of Integrating Reporting on Earnings Quality: A Study of Family Firms in Indonesia

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  • Shanti

    (Widya Mandala Catholic University, Dinoyo Street, 42-44, 60265, Surabaya, Indonesia Author-2-Name: Bambang Tjahjadi Author-2-Workplace-Name: Airlangga University, Airlangga Street 4-6, 60286, Surabaya, Indonesia Author-3-Name: I Made Narsa Author-3-Workplace-Name: Airlangga University, Airlangga Street 4-6, 60286, Surabaya, Indonesia Author-4-Name: Author-4-Workplace-Name: Author-5-Name: Author-5-Workplace-Name: Author-6-Name: Author-6-Workplace-Name: Author-7-Name: Author-7-Workplace-Name: Author-8-Name: Author-8-Workplace-Name:)

Abstract

Objective - The implementation of integrated reporting (IR), which is a composite of financial and non-financial information, in one single report makes financial reporting more comprehensive and more transparent. Transparent information in IR gives annual reporting of family firms a higher earnings quality. Methodology/Technique - This research aims to examine the effect of IR on earnings quality of family firms in the mining industry on the Indonesian Stock Exchange between 2014 and 2017. Findings - The results of this study indicate that there is a positive and significant relationship between integrating reporting and earnings quality. These results confirm that firms that use integrated reporting tend to show higher earnings quality. The study also finds that larger sized companies and larger leverage amounts equals a higher volume of information disclosed. Novelty � The motivation of this research is to examine IR issues that are relatively new.

Suggested Citation

  • Shanti, 2018. "The Effect of Integrating Reporting on Earnings Quality: A Study of Family Firms in Indonesia," GATR Journals jfbr144, Global Academy of Training and Research (GATR) Enterprise.
    • Handle: RePEc:gtr:gatrjs:jfbr144
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    References listed on IDEAS

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    4. Pavlopoulos, Athanasios & Magnis, Chris & Iatridis, George Emmanuel, 2017. "Integrated reporting: Is it the last piece of the accounting disclosure puzzle?," Journal of Multinational Financial Management, Elsevier, vol. 41(C), pages 23-46.
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    Cited by:

    1. Petra F. A. Dilling & Sinan Caykoylu, 2019. "Determinants of Companies that Disclose High-Quality Integrated Reports," Sustainability, MDPI, vol. 11(13), pages 1-31, July.

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    More about this item

    Keywords

    Earnings Quality; Family Firms; Financial Reporting; Indonesia; Integrated Reporting.;
    All these keywords.

    JEL classification:

    • M40 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - General
    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting
    • M49 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Other

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