The Corporate Governance–Disclosure Nexus and Integrated Reporting among Jordanian SMEs

This study examines the quality of Integrated Reporting (IR) of governance systems. IR is ‎rapidly becoming a tool for businesses to comprehend better the process of creating value and ‎interacting with outside parties. Initially, a questionnaire was created for this study to evaluate ‎integrated report quality. Following that, the data was collected from 384 Jordanian SMEs. SEM-‎Smart PLS was used to assess the agency theory-based hypotheses on the association between ‎SMEs and the caliber of IR. The results demonstrate that the corporate governance system ‎offers significant support for giving stakeholders high-quality information on the value creation ‎process through investor relations. The reason for this is that, in contrast to a voluntary reporting ‎model like IR, Jordanian SMEs place a great deal of importance on corporate governance ‎requirements and the processes that follow mandated corporate reporting obligations. The ‎results suggest that, despite using resources to prepare integrated reports, considering that many ‎aspects of corporate governance are meant to satisfy reporting requirements, directors have not ‎placed much emphasis on the provision of superior information via voluntary disclosure ‎procedures like integrated reporting (IR)‎.