Do board directors and good corporate governance improve integrated reporting quality? The moderating effect of CSR: an empirical analysis

2022

Preprint

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This paper aims to shed light on the relationship between audit committee attributes and the integrated reporting quality (IRQ). This study uses panel data and multiple regression. The outcomes almost entirely confirm the expectations relating to the impact of audit committee attributes on the IRQ. In particular financial expertise and meetings are shown to have a significant positive impact on IRQ. However, we do not find a significant association between key aspects of the audit committee function, such as audit committee independence and IRQ.

Section: Methodsmentioning

confidence: 99%

“…Therefore, the contributions concerning the determinants of integrated reporting quality are limited. This signi cant gap in literature makes it necessary to analyze the key factors that can explain the quality of integrated reporting (Chouaibi et al, 2021).…”

Section: Introductionmentioning

confidence: 99%

Do audit committee attributes improve integrated reporting quality? Evidence from European Companies listed on STOXX EUROPE 600 INDEX

Belhouchet

2022

Preprint

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“…That is, disclosure facilitates a firm’s visibility, which shareholders and financial partners may interpret as a signal of the firm’s successful attempts to meet their expectations, thereby turning into lower perceived risks and easier access to capital markets. Likewise, voluntary disclosure supports the firm in facing social and political pressures to act in socially acceptable ways (Oyewumi et al , 2018; Chouaibi and Affes, (2021); Chouaibi et al (2021a, 2021b, 2021c).…”

Section: Literature Review and Formulation Of Hypothesesmentioning

confidence: 99%

“…The high level of IRQ makes it very easy for business stakeholders to determine the future performance of the business (Chouaibi et al , 2021b).…”

Section: Formulation Of Hypothesesmentioning

confidence: 99%

“…Following a study of the theoretical and empirical literature on IRQ, we discovered that this variable is measured in a variety of ways in various contexts(Pistoni et al, 2018;Vitolla et al, 2020). To account for the disclosure, previous studies used binary or low range scores(Matsumura et al, 2014;Frias- Aceituno et al, 2014;Chouaibi et al, 2021aChouaibi et al, , 2021bChouaibi et al, , 2021c. It is proposed that the item "CGVS" be used to measure the IRQ as part of our analysis (ASSET4 Datastream).…”

mentioning

confidence: 99%

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The integrated reporting quality, cost of equity and financial performance in Islamic banks

Belhouchet

et al. 2022

JGR

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Purpose The purpose of this paper is to examine the effect of integrated reporting quality (IRQ) on the cost of equity and financial performance of Islamic banks (IBs) in the Middle East and North Africa (MENA) region. Design/methodology/approach This study examines 67 IBs in the MENA region over a period of six years (2015–2020). This paper is motivated by the use of the method of ordinary least on square panel data. A multiple regression model is used to analyze the impact of the quality of integrated reporting, on the one hand, on the cost of equity and, on the other hand, on the financial performance of IBs in the MENA region. Similarly, as an extension of the research, the authors exploited the dynamic effect of the data set through the generalized method of moments and estimated the impact of the one-year lagged value of the cost of equity. Findings The empirical results obtained do indicate that the quality of integrated reporting seems to have a significant negative effect on the cost of equity capital. It is also interesting to note that IRQ has a positive and significant impact on the financial performance of IBs. Research limitations/implications Current research can help and encourage IBs to provide quality information to reduce the cost of equity. Furthermore, this research could be a valuable source of information for policymakers, regulators and stakeholders on IB governance practices and disclosure. Finally, integrated reporting is very important for the progress and development of the Islamic banking sector. Originality/value This paper is motivated by the limited research on integrated reporting and financial performance of IBs. It makes an important contribution to the academic literature by adding to the limited body of research on the cost of equity, performance and quality of integrated reporting in the MENA region. This study is also important for the investors seeking to reduce the cost of equity to improve financial performance.

Sustainable Development

Corporate governance code and voluntary disclosure of integrated reporting: Evidence from an emerging economy

Hamad

Lai

Shad

et al. 2022

Integrated reporting (IR) is the most recent business reporting paradigm that seeks to improve information quality and create sustainable value. This study investigates the impact of the Malaysian Code on Corporate Governance (MCCG) 2017 on the voluntary IR disclosure quality. Data is collected from the top 100 Malaysian public listed companies from 2016 to 2020. The study used content analysis and a developed IR disclosure index on panel data of companies that fully adopt IR. The results show ongoing growth in IR adoption among Malaysian companies; most of them are aware of its benefits. The study provides empirical evidence on the positive influence of MCCG 2017 on the IR disclosure quality using the random effects generalised least squares regression model. The trend analysis confirms that Malaysian companies enhanced their IR disclosure quality, especially after 2017. The results also show that the research sample has reported 70% for each IR content element in 2020. In this regard, the highest reported element is 'risks and opportunities'. Thus, several companies have established enterprise risk management frameworks and risk committees. This study contributes to the literature by providing an intensive investigation of the IR practices in Malaysia's earliest adoption stages preceding and following the MCCG 2017.