The determinants of integrated reporting quality in financial institutions

Purpose: This study aims to investigate the financial and country-level determinants of integrated reporting quality in the financial industry. Specifically, this study analyses the impact of profitability, size, leverage and civil law system on the integrated reporting quality. Design/methodology/approach: Hypotheses were tested using a regression model on a sample of 87 financial institutions. An integrated reporting (IR)-quality scoreboard was used to measure report quality. Findings: The results show that IR quality is significantly and positively influenced by profitability, size, financial leverage and the civil law system. Practical implications: The results have particularly important implications for large, profitable financial institutions that make greater use of financial leverage and that are localized in non-civil law countries. Managers should increase transparency by expanding the content and quality of the information contained in the integrated reports. Originality/value: This study contributes to the literature by revealing several financial factors that influence IR quality. To the best of the authors’ knowledge, this is the first study to investigate IR quality in the context of the financial industry.