This study examined the effect of board characteristics and institutional ownership on integrated reporting (IR) among companies listed in the East Africa Community (EAC) partner states' stocks/securities exchanges.
A checklist was developed to assess the level of IR. The study used a sample of 63 listed firms and panel data over the period between 2013 and 2022. The fixed effect regression model was used to test the hypotheses.
The findings revealed that board size, board independence, board gender diversity and institutional ownership had a positive effect on IR.
The study used content analysis to measure IR. However, no checklist can adequately measure IR. Furthermore, this study focused on whether an item in the checklist was provided using a binary scale. Therefore, disregarding the level of details or quality of disclosure. Consequently, future research may utilize alternative metrics of IR as well as applying qualitative methodologies.
Regulators and shareholders aiming to promote the use of IR can use the findings of this study in identifying corporate governance mechanisms that act as catalysts for this goal. Specifically, the findings demonstrate that to enhance the quality of IR, publicly listed companies should maintain larger boards, increase board independence, advocate for greater female participation on boards and foster institutional ownership.
This research is among the first to assess the impact of board characteristics and institutional ownership on IR among publicly traded companies in EAC.
