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Water and Energy International
Year : 2023, Volume : 66r, Issue : 5
First page : ( 48) Last page : ( 52)
Print ISSN : 0974-4207. Online ISSN : 0974-4711.

Value-creation of power and energy companies & integrated reporting: An empirical analysis

Agarwal Himanshu1, Prof. Dr. Samanta Sasmita2

1Research Scholar (Commerce), KIIT Deemed to be University, Bhubaneswar, Odisha

2Vice-Chancellor, KIIT Deemed to be University, Bhubaneswar, Odisha

Online published on 7 September, 2023.

Abstract

The value creation of companies, specifically technical sector companies, is mainly affected by the complexity of handling and disclosing non-financial information. The complexity was further exaggerated by the presence of multiple non-financial reports along with the traditional financial report of the companies. Contextually, to mitigate the complexity of multiple reports, Integrated Reporting practices have been developed, ensuring enhanced and better disclosure of financial and non-financial information in a single annual report of the company. The present study aims to analyse the influence of Integrated Reporting (IR) practices on the value-creation of sample power and energy sector companies in India who have voluntarily adopted IR practices over five years (2017-18 to 2021-22). Statistical tools such as correlation and panel data regression analysis were used for the study. The empirical result of the study reveals a statistically significant and positive association of IR practices with the value of firms. The study findings would be helpful for the companies in redefining their strategies towards asset management, i.e., unlocking the value of assets by adopting IR practices. The study’s originality and novelty consider the power and energy sector vital to a country’s economic development. Also, the study provides a more comprehensive aspect of the existing literature by analysing its impact on performance and value creation. At the same time, hardly any studies were found on this sector’s analysed aspect.

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Keywords

Integrated Reporting, Corporate Disclosure, Value Creation, IR Index, Power and Energy Sector.

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