Does corporate governance improve integrated reporting quality? A meta-analytical investigation
ISSN: 2049-372X
Article publication date: 13 February 2023
Issue publication date: 13 November 2023
Abstract
Purpose
The relationships between integrated reporting quality (IRQ) and corporate governance characteristics have been studied extensively, but the results are still inconclusive and, sometimes, contradictory. The purpose of this paper is to systematize the results of previously published studies on the relationship between corporate governance and IRQ.
Design/methodology/approach
This paper uses several complementary theoretical perspectives (agency, stakeholder and signaling theory). The relevant aspects of the corporate governance system are the attributes and composition of the board, the existence of a social responsibility committee, the quality of the audit committee, integrated report assurance and ownership structures. The sample consisted of 61 papers published in top journals between 2015 and 2021. Meta-analytic procedures were applied on bivariate and partial correlations between IRQ and the identified corporate governance characteristics.
Findings
The results confirm that director independence, the existence of a social responsibility committee, institutional ownership and the hiring of a Big 4 auditor are significantly correlated with IRQ. On the other hand, board gender diversity, audit committee independence and dedicated assurance have a positive but nonsignificant impact on IRQ. Chairperson-chief executive officer duality does not seem to impact report quality, while ownership concentration has a negative but nonsignificant impact on IRQ.
Research limitations/implications
Future research can improve the measurement of focal indicators by using a common set of variables for comparability, favoring disaggregate measures of corporate governance and updating the measurement of some indicators. Future research could also propose new indicators in the area of corporate governance and expand the theoretical domain of IRQ research.
Originality/value
The findings emphasize the need to explicitly consider the role of corporate governance structures and arrangements in improving IRQ. Through meta-analysis, the paper aims to provide a comprehensive and generalizable set of findings, suggesting that corporate governance indicators cannot be overlooked as predictors of integrated reporting.
Keywords
Acknowledgements
The authors are very grateful to the Editor, Dr Warren Maroun, and Reviewers for their valuable and timely comments. Authors are also grateful for the comments received at the 14th IAAER World Congress, Paris, December 1-2, 2022. The participation at the congress was funded by the Bucharest University of Economic Studies.
Citation
Dragomir, V.D. and Dumitru, M. (2023), "Does corporate governance improve integrated reporting quality? A meta-analytical investigation", Meditari Accountancy Research, Vol. 31 No. 6, pp. 1846-1885. https://doi.org/10.1108/MEDAR-03-2022-1618
Publisher
:Emerald Publishing Limited
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