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Digital Information Integrated Reporting and Its Impact on Firm Valuation (Evidence in Indonesia)

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Digital Science (DSIC 2021)

Part of the book series: Lecture Notes in Networks and Systems ((LNNS,volume 381))

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Abstract

Proving the association of digital integrated reporting <IR> information provided directly or indirectly by the company through the company’s website on firm valuation and the moderating role of CEO compensation on this association is the purpose of this study. The analysis uses WarpPLS version 7.0 with a sample of 150 observational data, from manufacturing sector listed on the IDX. The results show that digital IR information provided directly or indirectly by companies is positively related to firm valuation, this shows how digitized information is a means for companies to increase firm valuation. In addition, CEO compensation moderates the association, meaning that the compensation received by the CEO moderates the association between digital IR and firm valuation. The implication of this research is the importance of disseminating digital information either directly or indirectly to be used as a company signal to potential investors or investors in making investment decisions that have a positive impact on firm valuation. The contribution of this research is to give a signal to companies about the importance of digital IR disclosures to increase firm valuation, and as a material for government considerations regarding IR disclosures for companies in Indonesia.

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Author information

Authors and Affiliations

  1. Universitas Diponegoro, Semarang, Indonesia

    Zaky Machmuddah, Abdul Rohman, Anis Chariri & Agung Juliarto

  2. Universitas Dian Nuswantoro, Semarang, Indonesia

    Zaky Machmuddah

Authors
  1. Zaky Machmuddah
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  2. Abdul Rohman
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  3. Anis Chariri
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  4. Agung Juliarto
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Corresponding author

Correspondence to Zaky Machmuddah .

Editor information

Editors and Affiliations

  1. Institute of Certified Specialists, Perm, Russia

    Tatiana Antipova

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Machmuddah, Z., Rohman, A., Chariri, A., Juliarto, A. (2022). Digital Information Integrated Reporting and Its Impact on Firm Valuation (Evidence in Indonesia). In: Antipova, T. (eds) Digital Science. DSIC 2021. Lecture Notes in Networks and Systems, vol 381. Springer, Cham. https://doi.org/10.1007/978-3-030-93677-8_31

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