Corporate Governance, Integrated Reporting and the Use of Credibility-Enhancing Mechanisms on Integrated Reports

The International Integrated Reporting Council (IIRC) and the South African King III Report on Governance emphasize the role of corporate governance in preparing a high-quality integrated report and establishing an appropriate credibility-enhancing process. This paper examines the significance of corporate governance mechanisms in explaining variations in the quality of integrated reports and the extent and quality of credibility-enhancing mechanisms (CEMs) for integrated reports. Using a sample of integrated reports published between 2012 and 2015 by listed companies on the Johannesburg Stock Exchange, this study finds that traditional governance mechanisms such as the board and the audit committee are positively related to the reporting quality