Integrated reporting and corporate tax avoidance among firms listed in the East Africa Community

Purpose Corporate taxes remain an important source of government revenue across the globe. Hence, the purpose of this study was to examine the effect of integrated reporting (IR) on corporate tax avoidance (CTA) among firms listed in the East Africa Community (EAC). Design/methodology/approach The study utilized a sample of 69 firms listed on the stock and security exchanges of the EAC partner states from 2014 to 2022. Tax avoidance was measured using cash effective tax rate (ETR), while IR was measured through content analysis of annual reports. The study employed several panel data regression techniques, including the ordinary least squares, the fixed effect, the random effect, system generalized method of moments. Findings The study found that IR had a positive and significant effect on ETR. The finding suggested that firms adopting IR are less likely to engage in tax avoidance practices. Practical implications The findings of this study may provide useful insights to investors and policymakers on the effectiveness of IR as a tool for reducing managerial actions related to tax avoidance practices. Originality/value This study contributes to the literature by examining the link between IR and CTA within the EAC, a gap that is missing in the existing empirical literature.