The Relevance of Integrated Reporting in the Intellectual Capital Disclosure and Financial Performance Nexus: Indian Evidence

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.