The role of stock price in the linkage within integrated reporting and firm value: A comparative study in Indonesia

This study investigates the relationship between integrated reporting scores (IRs), firm value (FV), and stock price (SP) among IR and Non-IR Adopters. IRs are measured using content elements, SP is the closing stock price at year-end, and FV is calculated using the Tobin's Q. The sample consists of 76 companies (38 IR Adopters and 38 Non-IR Adopters) listed on the Indonesia Stock Exchange from 2017 to 2021. Data are gathered through purposive sampling from accessible annual and sustainability reports. The analysis reveals significant differences in firm value between the two groups, with IR Adopters showing higher variability despite lower average values. The findings indicate that IRs negatively impact firm value among IR Adopters, while the effect is insignificant for non-IR adopters. SP significantly moderates this relationship, weakening the link between IRs and FV for IR Adopters while not serving as a moderator for Non-IR Adopters. These insights encourage firms to adopt integrated reporting and enhance IRs quality to improve investor confidence and firm value.