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Integrated Reporting and Firm Value: Empirical Evidence from Sri Lankan Licensed Finance Companies

F. Hirudika & G. Vijitha

International Journal of Accounting and Business Finance2025https://doi.org/10.4038/ijabf.v11i2.181article
ABDC C
Weight
0.50

What the paper says

Integrated Reporting (IR) is promoted as a reporting practice that improves transparency, accountability, integrated thinking, and firm'value creation. Although the IR literature on developed contexts reveals a positive relationship between IR and firm value, the same is not true in less developed contexts. This study examines the relationship between IR disclosure and firm value among Sri Lankan licensed finance companies. Based on the Legitimacy Theory, this study supports the idea that, in weakly and voluntarily regulated reporting practices, IR adoption might be motivated more by concern with legitimacy than with substantive value creation. The study is based on data from ten licensed finance companies from 2016-2022. The IR disclosure is measured by an Integrated Reporting Disclosure Index, while Tobin Q and the Market-to-Book Ratio are used to measure firm value. Firm size has been used as a control variable. The findings indicate a statistically significant negative relationship between IR disclosure and firm value across both firm valuation measures. The evidence indicates that IR practices within the Sri Lankan finance sector are relatively standardized and not yet viewed by investors as value-relevant, suggesting a more legitimacy-oriented approach to IR.

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https://doi.org/https://doi.org/10.4038/ijabf.v11i2.181

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@article{f.2025,
  title        = {{Integrated Reporting and Firm Value: Empirical Evidence from Sri Lankan Licensed Finance Companies}},
  author       = {F. Hirudika & G. Vijitha},
  journal      = {International Journal of Accounting and Business Finance},
  year         = {2025},
  doi          = {https://doi.org/https://doi.org/10.4038/ijabf.v11i2.181},
}

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Integrated Reporting and Firm Value: Empirical Evidence from Sri Lankan Licensed Finance Companies

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Evidence weight

0.50

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.50 × 0.4 = 0.20
M · momentum0.50 × 0.15 = 0.07
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.