Does integrated reporting moderate the relationship between ownership structure and firm performance?

Dea Tiara Monalisa Butar-Butar; Siti Nurhaliza; Iskandar Itan

doi:10.17977/jabe.v10i2.63545

Does integrated reporting moderate the relationship between ownership structure and firm performance?

Dea Tiara Monalisa Butar-Butar, Siti Nurhaliza, Iskandar Itan

Abstract

The moderating effect of integrated reporting (IR) on the association between ownership structure and company performance is examined in this study. It specifically looks at how operational profitability is impacted by environmental, social, and governance (ESG) factors and whether IR improves the relationship between ownership traits and firm outcomes. Using a sample of 435, the research employs multiple regression analysis to test the proposed relationship. The results show that operational profitability as determined by Return on Assets (ROA) is positively and significantly impacted by ESG performance. Additionally, the findings show a strong positive correlation between ownership concentration and institutional ownership and ROE and ROA. These results imply that companies with more concentrated.

Keywords

ESG; ROA; ROE; Institutional Ownership; Ownership Concentration

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DOI: http://dx.doi.org/10.17977/jabe.v10i2.63545