The Impact of Corporate Governance on the Level of Compliance with Integrated Reporting

Integrated reporting represents the latest development in corporate disclosure, aiming to provide comprehensive information about an organization’s strategy, business model, performance, and governance while providing a clear view of its ability to create value in the long term. In recent years, academic interest in integrated reporting has increased significantly. However, the level of compliance of these reports with the requirements of the International Integrated Reporting Council (IIRC) remains an area that needs further research. This research seeks to fill the gap by analyzing the impact of three board characteristics (board size, board independence, and board activity) on how well integrated reporting corresponds to the integrated reporting framework. The results show that board independence and size have a positive and significant effect on how well reports conform to the integrated reporting framework. On the other hand, participation by board activity has no discernible impact on the degree of compliance to the integrated reporting system.