Title: The influence of integrated reporting compliance on analyst forecast accuracy and credit ratings

Authors: Athanasios Pavlopoulos; George Emmanuel Iatridis; Dimitrios N. Koufopoulos

Addresses: Department of Economics, University of Thessaly, Volos, Greece ' Department of Economics, University of Thessaly, Volos, Greece; College of Administrative Sciences and Economics, Koc University, Istanbul, Turkey; School of Social Sciences, Hellenic Open University, Patras, Greece ' Centre for Online and Distance Education, University of London, London, UK

Abstract: This study examines how integrated reporting (IR) affects analyst forecasts and credit ratings. Our findings indicate that a high level of IR compliance contributes additional valuable information to improve analyst forecast accuracy. Our research reveals that earnings manipulation exhibits a less pronounced negative relationship with credit ratings for companies that exhibit strong IR compliance. Additionally, we observe a positive association between voluntary IR adoption and credit ratings among companies that uphold high IR compliance standards. Finally, our study suggests that companies with robust IR compliance tend to receive higher credit ratings, even in cases where their legal, cultural and political institutional context may be less supportive.

Keywords: integrated reporting; analyst forecast accuracy; credit ratings; compliance quality.

DOI: 10.1504/IJBAAF.2024.141391

International Journal of Banking, Accounting and Finance, 2024 Vol.14 No.2, pp.206 - 246

Accepted: 28 Mar 2024
Published online: 10 Sep 2024 *

Full-text access for editors Full-text access for subscribers Purchase this article Comment on this article