Abstract
Purpose – This study aims to analyze the relationship between the adoption of Integrated Reporting and earnings quality in the Brazilian context.
Theoretical framework – Earnings quality can signal a more sustainable, ethical, and transparent behavior by company management. Therefore, it can serve as an indicator of changes in management practices associated with the implementation of integrated thinking.
Design/methodology/approach – The study employed a panel data model, considering a sample of 630 observations from non-financial Brazilian companies from 2017 to 2020. The data for companies adopting integrated reporting were collected manually from the companies' corporate disclosures.
Findings – Analyzing the quality of integrated reporting revealed a significant relationship with earnings quality. This may indicate that these companies are making internal changes regarding information transparency, and it is also expected that they experience less pressure to deliver short-term results.
Research Practical & Social implications – The research findings are relevant for shareholders, highlighting how integration can drive internal changes within the company. For regulators and society, it presents an opportunity to anticipate the effects of adopting ISSB standards, as this body has incorporated the IIRC.
Originality/value – It allows for indirect observation of changes in company management and managerial opportunism. Brazil presents a relevant context due to the publication of oCPC 09 and the high number of adopters of integrated reporting.
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