Integrated Reporting and Intention to Invest An Experimental Study with Non-Professional Investors

Negina Kencono Putri, Sugiarto Sugiarto, Amber Lumbantoruan, Triani Arofah


Objectives – Integrated Reporting is a form of presentation of information to stakeholders that
combines Financial Reports with Sustainability Reports. This study aims to test whether the
presentation of integrated reporting by the company could influence a person's intention to invest in the
capital market.
Method – Study carried out using an experimental method with a between-within-subject and 2x2
factorial design (Presentation: Integrated reporting & Non Integrated reporting x Format: GRI & Non
GRI), using 60 students majoring Accounting, both under graduates and post graduates as participants,
who are surrogates as non-professional investors.
Findings - The results show that there are differences in the investment decisions made by participants
if the information is presented in the form of Integrated reporting consisting of Financial Reports and
Sustainability Report, compared to the information that is not presented in Integrated Reporting
(separate Financial Reports from the Sustainability Report). The result shows that participants give
different weights to the format of the reports presented. So, it concluded that the format of the report
can affect the intention of the non-professional investors to invest. This study also provides evidence
that individual decisions can be influenced by the format of the Sustainability Report form, where
participants give a better weight to the Sustainability Report that refers to the GRI format, compared to
the Sustainability Report that does not refer to the GRI format.
Research limitations – This research involves non-professional investors, so that for further research,
professional investors can use participants so that the results obtained can be closer to real.
Value – Companies need to consider the presentation of financial statements and sustainability reports
in an integrated manner, with reference to the applicable standards, both accounting standards and
sustainability reporting standards.
Keywords: Integrated Reporting, Financial, Sustainability, Global Reporting Initiatives (GRI), nonprofessional

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