Enhanced Business Reporting: Analysis of the Determinant Factors for Value Creation in Portugal

Diversification and innovation are trendy concepts, which combined with competitiveness, lead to the need to produce more detailed reports, where disclosed information is increasingly important to attract investors. This work analyzes the developments and concepts of the Enhanced Business Report and investigates the relevance of voluntary disclosures. It aims to identify the determining factors for value creation, linking voluntary disclosures to value creation and assessing whether they are relevant to the valuation of companies. The study was based on companies in the Euronext Lisbon market. The obtained results show that the quality of profits and the size of companies are the most significant determinants and that voluntary disclosures, other than making a difference in value creation, are relevant to market valuation and provide additional value through their explanatory power.