Integrated Reporting Quality Towards Cost of Equity Capital: Study in Indonesia’s LQ45 Index Listed Company

Along with the development of business, technology, and global issues, the information needs of stakeholders are getting higher. On response of these trends, the International Integrated Reporting Council (IIRC) published the International Integrated Reporting Framework (IIRF). This research aim to find the correlation and how much the Integrated Reporting Implementation towards Cost of Equity as the proxy of asymmetry information reduction. This reasearch is a descriptive quantitative research using panel data on company listed in LQ45 index amounted 45 companies from various sector. The result shows that higher quality of implementation of Integrated Reporting significantly reduce the cost of equity. It is explain as the information asymmetry decline at the time implementation quality of integrated reporting higher, so does the cost of equity expected by equity holder of the company. Keywords: Integrated Reporting, Cost of Equity (COE), Information Asymmetry, LQ4