IDEAS home Printed from https://ideas.repec.org/a/taf/euract/v30y2021i1p175-195.html
   My bibliography  Save this article

How Does Combined Assurance Affect the Reliability of Integrated Reports and Investors’ Judgments?

Author

Listed:
  • Hien Hoang
  • Soon-Yeow Phang

Abstract

As integrated reports evolve to meet the needs of stakeholders, it is increasingly important to establish reliable information. We examine the effect of a new technique to enhance the reporting reliability, referred to as ‘combined assurance’ (through which the audit committee coordinates the assurance roles of management, internal assurance and external assurance providers and concludes on the effectiveness of risk management, internal controls and reporting quality), on restoring investors’ willingness to invest when there are significant reporting reliability risks. We conduct a series of experiments with different operationalizations of reporting reliability risks. We find that the communication of combined assurance can restore investors’ perceived reliability of reported information and willingness to invest when there is bad news (Experiment 1); when there is a non-financial key audit matter (KAM) indicating estimation uncertainty in the non-financial information (Experiment 2); and when there is a financial KAM indicating risks of manipulated financial reporting (Experiment 3). Our study has implications for practitioners, standard setters, and regulators who are exploring possible mechanisms to enhance the reliability of financial and non-financial information in the integrated reports.

Suggested Citation

  • Hien Hoang & Soon-Yeow Phang, 2021. "How Does Combined Assurance Affect the Reliability of Integrated Reports and Investors’ Judgments?," European Accounting Review, Taylor & Francis Journals, vol. 30(1), pages 175-195, January.
    • Handle: RePEc:taf:euract:v:30:y:2021:i:1:p:175-195
    DOI: 10.1080/09638180.2020.1745659
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/09638180.2020.1745659
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/09638180.2020.1745659?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Amir Hossain & Sudipta Bose & Abul Shamsuddin, 2023. "Diffusion of integrated reporting, insights and potential avenues for future research," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 63(2), pages 2503-2555, June.
    2. Hien Hoang & Robyn Moroney & Soon‐Yeow Phang & Xinning Xiao, 2023. "Investor reactions to key audit matters: Financial and non‐financial contexts," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 63(3), pages 3325-3349, September.
    3. Oleksandr Sherstiuk & Tetiana Demianenko, 2023. "Integrated Reporting in the Context of Information Support of Business Analysis," Oblik i finansi, Institute of Accounting and Finance, issue 4, pages 39-46, December.
    4. Oleksandr Sherstiuk, 2024. "Methodical Aspects of the Integrated Reporting Preparation," Oblik i finansi, Institute of Accounting and Finance, issue 1, pages 22-27, March.
    5. Boyle, Erik S. & Mintchik, Natalia & Warne, Rick C., 2023. "When it pays to be a friend: Investigating nonprofessional investors' judgments toward CSR companies following an accounting restatement," Advances in accounting, Elsevier, vol. 60(C).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:euract:v:30:y:2021:i:1:p:175-195. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/REAR20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.