Integrated Reporting and Earnings Quality: The Moderating Effect of Agency Costs (Summary)

CFA Institute Journal Review summarizes "Integrated Reporting and Earnings Quality: The Moderating Effect of Agency Costs" by Victoria A. Obeng, Kamran Ahmed, and Seema Miglani, from the Pacific-Basin Finance Journal, April 2020.

Overview

Voluntary integrated reporting (IR, a non-accounting standard) has a positive impact on accounting information and the quality of reported earnings. Firms that use IR benefit from higher earnings quality compared with non-IR firms. Higher integration results in improved earnings quality. Managerial opportunism does not impact IR practice effectiveness. Also, firm complexity does not influence IR practice or earnings quality.

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