The Impact of Integrated Reporting Practices on Firm Value Evidence from Listed Companies in Sri Lanka

This study examines the impact of Integrated Reporting (IR), specifically based on the content elements guided by the International IR Framework (IIRF), on the firm value of companies listed on the Colombo Stock Exchange, where the adoption of IR is a voluntary exercise. This study bridges the research gap on the impact of IR practices on firm value, particularly in the context of an emerging economy like Sri Lanka. The analysis spans 2022 to 2024, and utilizes secondary data from the annual reports of forty-one publicly listed companies (PLCs) on the Colombo Stock Exchange, with a total of 123 annual integrated reports examined and measured through content analysis using an IR index. Firm value was assessed using Tobin’s Q. The regression analysis indicated that governance-related disclosures show a statistically significant positive association with firm value, while other IR content elements do not demonstrate significant effects. This research contributes to the understanding of IR’s effectiveness in emerging economies such as Sri Lanka, and calls for stronger regulatory frameworks to enhance the adoption and impact of IR.