What question did this study set out to answer?

This research aims to investigate how integrated reporting affects the relationship between intellectual capital disclosure and firm performance.

April 5, 2026

The relevance of integrated reporting in the intellectual capital disclosure and financial performance nexus: Indian evidence

Key Points

This research aims to investigate how integrated reporting affects the relationship between intellectual capital disclosure and firm performance.
Analyzed 100 firms listed on the Bombay Stock Exchange from 2018-2023
Classified firms as integrated reporting or annual reporting adopters
Measured intellectual capital disclosure using a four-point content analysis scale
Compared performance indicators like return on assets and Tobin's Q
Firms using integrated reporting disclose significantly more intellectual capital information than those using annual reporting
Intellectual capital disclosure positively impacts both return on assets and Tobin's Q for integrated reporting firms
Intellectual capital disclosure in annual reporting is only positively linked to Tobin's Q
Integrated reporting significantly moderates the relationship between intellectual capital disclosure and firm performance

Abstract

This study explores the moderating role of integrated reporting (IR) in the relationship between intellectual capital disclosure (ICD) and firm performance, using a novel and comprehensive ICD framework. Analysing 100 Bombay Stock Exchange-listed firms from 2018-2023, divided equally between IR and annual reporting (AR) adopters, ICD was measured using a four-point content analysis scale. Findings reveal that IR firms disclose significantly more IC information than AR firms. ICD in IR has a positive and significant effect on both return on assets (ROA) and Tobin's Q, while ICD in AR is positively linked only to Tobin's Q. Further, IR significantly moderates the ICD-performance relationship. This study contributes original empirical evidence from India on the strategic value of IR in enhancing IC transparency and its financial impact, offering important insights for firms, regulators, and standard setters focused on improving reporting quality and long-term value creation.

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