The Impact of Audit Firm Size on the Relationship between Integrated Reporting and Sustainability Performance: Conceptual Paper

This study seeks to develop theoretical frameworks regarding the impact of audit quality and integrated reporting on financial, environmental, social and governance (FESG) sustainability performance. This will assist future empirical research in investigating how the interplay of these two factors influences FESG sustainability performance. The objective is to determine whether these dimensions function synergistically or independently in influencing FESG sustainability performance. This study anticipates that the interaction between audit quality and integrated reporting quality will significantly enhance FESG sustainability performance. This study provides regulators, corporations, and stakeholders with theoretical insights to advocate for integrated reporting and stringent corporate governance, such as the Big Four audit firms. Thus, companies can generate long-term value and attain transparency and accountability, resulting in reduced capital costs, elevated valuations, and enhanced FESG sustainability performance.