Integrated report, information asymmetry, and cost of equity

Abstract

This research ran to examine the effect of Integrated Report (IR) on Information Asymmetry (IA) and the Cost of Equity (COE) of companies. The sample companies were those registered in the International Integrated Reporting Council (IIRC) database from 2013 to 2015. The test results using multiple linear regression proved that IR affected IA negatively and that each part of IR, namely Guiding Principles and Content Elements, had a direct negative impact. The higher IR, the lower both IA and COE. The results of this study may contribute on the increasing information quality in Indonesia.