Forward-Looking Information Based on Integrated Reporting Perspective: Value Relevance Study in Indonesia Stock Exchanges

The International Integrated Reporting Council (IIRC) in 2013 has formulated the Integrated Report
Framework. Integrated reporting provides forward-looking information related to the company's
holistic picture, future targets and the relationship between financial performance and non-financial
performance. Indonesia does not require companies to report integrated reporting, but many voluntary
ones have provided partial disclosures about aspects that are regulated in the integrated report
framework. This study aims to provide empirical evidence about the effect of forward-looking
disclosure on firm value. The research population is a manufacturing company on the Indonesia Stock
Exchange for the 2015 and 2016 annual reports. The sample is selected based on the availability of
annual reports accessed through the company's web and the Indonesia Stock Exchange. The
population is 144 manufacturing, and sample companies were 70 which was collected for two years,
so there were 140 firms’ years. The forward-looking measurement is based on the disclosure index.
GCG variables are used as control variables because empirically GCG can affect the value of the
company. The results of the study showed that forward-looking disclosure has a significant effect on
the value of the company and can explain the 20.9% variation in the value of the company.