Title : Integrated Reporting and Investment Decisions: The principle of connectivity and time horizon investment
Authors:
- Murdiyati Dewi
- Dian Agustia
- Ardianto
Department : Accounting
Journal Name : Journal of Economics and Finance
Kinds of Journal : Sinta 2
Keywords : Integration Reporting; Connectivity; Investment time horizon; Investment Decision
ABSTRACT
An integrated report is a report which contains financial and non-financial information to communicate value creation process by a company. One of the main principles in integrated reporting is connectivity. Using an experimental factorial design of 2 × 2, this study aims to investigate the effects of connectivity in integrated reporting to support investment decisions by non-professional investors. The non-profital investors are surrogated by 87 Accounting Undergraduate Students.in addition, the study Also discusses the effect of time horizons and the interaction between connectivity and time horizon on investment decisions. Investment Decision is measured by Total Investment in Monetary Units. Case Material is adopted from the International Integrated Reporting Council with some modifications in diagrams which illustrate information and capital connectivity. Hypotheses are tested Purouva and the effects of treatment are examined by performance post hoc tests. The results show that non-professional investors with high connectivity in integrated report has higher investment decisions than those with low connectivity. In contrast, non-professional investors with integrated reports of high connectivity and long-term investments decide the amount of investment is greater than non-profital investors with integrated reports of low connectivity and short-term investments, is not supported.
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