The Effect of Industry Sensitivity, Leverage, and Market Capitalization to the Elements of Integrated Report in Indonesian Publicly Listed Firm Annual Report
Meiryani, Brilliant Alfred Lorenzo

Accounting Department, Faculty of Economics and Communication, Bina Nusantara University, Jakarta, Indonesia 11480

Abstract

Integrated reporting has emerged as a new corporate reporting mechanism developed by the International Integrated Reporting Council (IIRC). As adoppption of integrated reporting is still voluntary in majority of countries, this study aims to investigate the firm characteristics that influence the decision of voluntary disclosing integrated report elements in Indonesian publicly listed annual report. Using a sample of 87 firms listed in the Indonesian Stock Exchange, this study investigated the influence of three firm characteristics, namely industry sensitivity, leverage, and market capitalization. By performing linear regression analysis, the study found that only the market capitalization is positively significant toward the elements of integrated report in Indonesian public listed firm annual report. The evidence indicates that firms with larger market capitalization voluntarily disclose more element of integrated report in their respective annual report.

Keywords: Integrated Report- Annual Report- Legitimacy Theory- Agency Theory- Sensitivity- Leverage

Topic: Engineering and Technology