RT Journal Article
T1 The value relevance of digitalization disclosure in integrated reports: A South African perspective
A1 Sukhari, Aneetha
A1 Coetsee, Daniël
A1 Ade-Ibijola, Abejide
AB The inevitable disruptions in the Fourth Industrial Revolution necessitates that companiesprovide investors with digitalization disclosure in integrated reports. This paper investigated whetherdigitalization disclosure in integrated reports affects the share prices of South African listedcompanies. The relationship between digitalization disclosure and share prices is examined using theOhlson (1995) Model through the application of panel data. A new proxy for the “other information”variable in the Ohlson (1995) Model was created for digitalization disclosure by developing adisclosure index to measure the scope of digitalization disclosure in integrated reports. The disclosureindex was incorporated into a new text analysis software named the Fourth Industrial RevolutionDisclosure Analysis Tool (4IRDAT), which uses algorithms based on natural language processingtechniques to facilitate the content analysis of digitalization disclosure in integrated reports. Twoscenarios were evaluated: including loss-making companies and excluding loss-making companies.The sample size, including loss-making companies and excluding loss-making companies, was 90(270 observations) and 72 (216 observations), respectively, for three years from 2018 to 2020. It wasestablished that there was an increase in digitalization disclosure over three years. The resultsindicated that digitalization disclosure had yet to be incorporated in the share price of South Africanlisted companies for both scenarios. This study is indispensable to regulators, practitioners, standardsetters, and academics because it provides empirical evidence on the value relevance of digitalizationdisclosure in integrated reports. This area has not been interrogated in a South African context.
PB Universidad de Huelva
YR 2023
FD 2023
LK https://hdl.handle.net/10272/22366
UL https://hdl.handle.net/10272/22366
LA eng
DS Repositorio Institucional de la Universidad de Huelva
RD 29 may 2026