Investigating the relationship between Integrated Report Quality and earnings forecasting bias and Share Price Informativeness

Subject Areas :

Muhammad Vahdani ¹ , Javad Muhammadi Mehr ²

1 - Department of Accounting, Bojnord University, Bojnord, Iran. (author and responsible
2 - Department of Accounting, Bojnord University, Bojnord, Iran.

Received: 2023-12-08 Accepted : 2024-01-30 Published : 2024-03-20

Keywords: Keywords: Integrated Report Quality, Earnings Forecasting Bias, Share Price Informativeness,

Abstract :

Abstract Integrated financial reporting provides investors with a comprehensive understanding and insight into the company and reduces the costs of obtaining information, processing, facilitating and combining relevant and effective information, and ultimately raising stock price awareness, improving information quality and facilitating more efficient capital allocation. The purpose of this study is to investigate the relationship between integrated financial reporting with earnings forecasting bias and stock price awareness. The statistical population of this research is all companies listed on the Tehran Stock Exchange and 167 companies in the period 1391 to 1399 have been selected by systematic elimination method. Also, to test the research hypotheses, a multivariate regression model based on composite data was used. The results of the first hypothesis indicate that there is a direct and significant relationship between integrated financial reporting and behavioral financial bias in stock price forecasting. The results of testing the second hypothesis showed that there is a direct and significant relationship between integrated financial reporting and accuracy of profit forecasting. Integrated financial reporting with disclosure of financial and non-financial information from the financial reporting process and corporate activity makes investors and analysts more accurate forecasts. The results of testing the third hypothesis showed that there is a direct and significant relationship between integrated financial reporting and stock price awareness. He said that by combining financial and non-financial information, the process of creating value for the company in the form of financial reporting makes the information content of stock prices informative and investors in stocks make optimal decisions according to rational investment theory.

References:

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