Does corporate governance improve integrated reporting quality? A meta-analytical investigation

Abstract

Purpose The relationships between integrated reporting quality (IRQ) and corporate governance characteristics have been studied extensively, but the results are still inconclusive and, sometimes, contradictory. The purpose of this paper is to systematize the results of previously published studies on the relationship between corporate governance and IRQ. Design/methodology/approach This paper uses several complementary theoretical perspectives (agency, stakeholder and signaling theory). The relevant aspects of the corporate governance system are the attributes and composition of the board, the existence of a social responsibility committee, the quality of the audit committee, integrated report assurance and ownership structures. The sample consisted of 61 papers published in top journals between 2015 and 2021. Meta-analytic procedures were applied on bivariate and partial correlations between IRQ and the identified corporate governance characteristics. Findings The results confirm that director independence, the existence of a social responsibility committee, institutional ownership and the hiring of a Big 4 auditor are significantly correlated with IRQ. On the other hand, board gender diversity, audit committee independence and dedicated assurance have a positive but nonsignificant impact on IRQ. Chairperson-chief executive officer duality does not seem to impact report quality, while ownership concentration has a negative but nonsignificant impact on IRQ. Research limitations/implications Future research can improve the measurement of focal indicators by using a common set of variables for comparability, favoring disaggregate measures of corporate governance and updating the measurement of some indicators. Future research could also propose new indicators in the area of corporate governance and expand the theoretical domain of IRQ research. Originality/value The findings emphasize the need to explicitly consider the role of corporate governance structures and arrangements in improving IRQ. Through meta-analysis, the paper aims to provide a comprehensive and generalizable set of findings, suggesting that corporate governance indicators cannot be overlooked as predictors of integrated reporting.