Title: Clustering Indonesian companies' Annual Reports: preliminary assessment of the implementation of integrated reporting by Indonesian listed companies

Authors: Arie Pratama

Addresses: Department of Accountancy, Faculty of Economics and Business Universitas Padjadjaran, Jl. Dipati Ukur No. 35, Bandung West Java, Indonesia

Abstract: The purpose of this research is to explore and analyse whether Indonesian companies' Annual Reports already disclose matters according to the Integrated Reporting (IR) Framework. This research analyses eight IR components. The research method employed is exploratory descriptive. The population is 493 companies listed on the Indonesian Stock Exchange that issued an Annual Report for the year 2014. The data were collected by browsing reports on the companies' websites and checking for disclosure using a checklist consisting of 55 items. The research uses cluster analysis and shows that, on average, Indonesian companies disclosed 53.81% of the IR components in their Annual Reports. This research also classifies the companies into four clusters, with Cluster 3 having the highest disclosure level, and Cluster 4 the lowest. Clusters 2 and 1 have moderate results, and the majority of companies belong to these clusters.

Keywords: Annual Report; business sectors; disclosure; integrated reporting.

DOI: 10.1504/IJGSB.2017.084697

International Journal of Globalisation and Small Business, 2017 Vol.9 No.1, pp.46 - 54

Received: 25 Feb 2016
Accepted: 30 May 2016
Published online: 21 Jun 2017 *

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