Reflecting Earnings Quality and Earnings Smoothness in Integrated Reporting: Evidence from Companies Listed on the Johannesburg Stock Exchange
Keywords
integrated reporting quality, earnings quality, earnings smoothness, COVID-19Abstract
This paper examines the relationship between Integrated Reporting Quality (IRQ) and both earnings quality and earnings smoothness of Johannesburg Stock Exchange (JSE) listed companies during the period 2012-2024. We also investigate the impact of the COVID-19 pandemic and its moderating role in this relationship. Our analysis shows a statistically significant association between IRQ and earnings quality, as measured by accrual quality and earnings smoothness. The COVID-19 variable has no significant direct effect on earnings quality but is weakly associated with earnings smoothness. The interaction effect between COVID-19 and integrated reporting quality is generally insignificant, except for a weak positive effect on accrual quality at the 10% level. This paper contributes to the literature by extending the analysis to a longer time horizon, highlighting the role of integrated reporting in crisis period and providing key insights into supporting more informed resource allocation decisions by investors.
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