Board Composition and Integrated Reporting Quality: The Moderating Role of Firm Performance

This study examines the relationship between board composition and integrated reporting quality (IRQ) and tests whether firm performance moderates this relationship. Using content analysis, IRQ is measured through a disclosure index based on the 2021 International Integrated Reporting Framework. The sample comprises 550 integrated annual reports from 110 companies listed on the Johannesburg Stock Exchange across multiple sectors for the period 2020–2024. Multiple regression analysis reveals that board size and gender diversity are positively and significantly associated with IRQ, suggesting that larger and more gender-diverse boards enhance monitoring effectiveness and stakeholder-oriented transparency. In contrast, board independence and audit committee size show no significant association with IRQ. The findings further indicate that firm performance does not moderate the relationship between board composition and IRQ, implying that reporting quality is driven more by governance structures than by financial outcomes. This study contributes post-2021 Framework evidence from a mandatory integrated reporting context, refines governance theory by highlighting the importance of board heterogeneity over formal independence, and positions IRQ as a governance outcome rather than a financial signalling mechanism. The results offer practical insights for regulators, investors, and policymakers seeking to enhance reporting quality.

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Publication Details

Journal
Journal of risk and financial management
Published
2026-03-24
DOI
https://doi.org/10.3390/jrfm19040238
Primary Topic
Auditing, Earnings Management, Governance
Type
article
Field-Weighted Citation Impact
0.00
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article

Board Composition and Integrated Reporting Quality: The Moderating Role of Firm Performance

Journal of risk and financial management
Auditing, Earnings Management, Governance
article

Board Composition and Integrated Reporting Quality: The Moderating Role of Firm Performance

article en

Abstract

This study examines the relationship between board composition and integrated reporting quality (IRQ) and tests whether firm performance moderates this relationship. Using content analysis, IRQ is measured through a disclosure index based on the 2021 International Integrated Reporting Framework. The sample comprises 550 integrated annual reports from 110 companies listed on the Johannesburg Stock Exchange across multiple sectors for the period 2020–2024. Multiple regression analysis reveals that board size and gender diversity are positively and significantly associated with IRQ, suggesting that larger and more gender-diverse boards enhance monitoring effectiveness and stakeholder-oriented transparency. In contrast, board independence and audit committee size show no significant association with IRQ. The findings further indicate that firm performance does not moderate the relationship between board composition and IRQ, implying that reporting quality is driven more by governance structures than by financial outcomes. This study contributes post-2021 Framework evidence from a mandatory integrated reporting context, refines governance theory by highlighting the importance of board heterogeneity over formal independence, and positions IRQ as a governance outcome rather than a financial signalling mechanism. The results offer practical insights for regulators, investors, and policymakers seeking to enhance reporting quality.

Journal of risk and financial managementVol. 19(4)
University of South Africa (ZA)
Gender equality
Openalex Percentile: Top 10%
Auditing, Earnings Management, Governance
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