2024, Vol. 7, Issue 2

author(s)
Asif Mushtaq and Mohiuddin Sangmi

abstract
This study employs a rigorous quasi-experimental design to examine whether voluntary adoption of Integrated Reporting (IR) enhances firm value in emerging Asian markets. Using a combination of Propensity Score Matching (PSM) and staggered Difference-in-Differences (DiD) methodologies, we address potential endogeneity issues by creating a matched control group of non-adopting firms with similar pre-treatment characteristics. Our results indicate that voluntary IR adoption does not produce a statistically significant improvement in firm valuation, challenging the prevailing assumption that sustainability reporting automatically creates shareholder value in these markets. The findings suggest that the benefits of IR may be contingent on factors such as reporting quality, institutional context, and market maturity rather than mere adoption. This research contributes to the literature by providing robust causal evidence from understudied Asian emerging markets, complementing existing Western-centric studies. The null results have important implications for corporate managers considering IR implementation and regulators evaluating disclosure frameworks in developing economies.