Firm-specific determinants of integrated reporting quality: evidence from listed companies in Sri Lanka

Abstract

Purpose This paper aims to examine the firm-specific determinants of integrated reporting quality (IRQ) using listed companies in Sri Lanka. Design/methodology/approach This study analyses 282 integrated reports from listed Sri Lankan companies over a six-year period. Multiple regression analysis is used to investigate how firm-specific factors influence IRQ, which is measured using a combination of the integrated reporting (IR) scoreboard and a coding framework. Hypotheses are based on three complementary theories, namely, agency, signalling and legitimacy theories. Findings The results indicate that risk management intensity and firm size have a significant positive impact on IRQ. Furthermore, ownership concentration has a delayed negative effect on IRQ. Profitability, leverage, size and independence of the board and audit committee, chief executive officer (CEO) duality, board gender diversity, institutional ownership and foreign ownership do not show a significant impact. Practical implications The findings suggest that firms to improve internal risk management systems while providing high-quality integrated reports for investors and lenders to make more informed decisions. Standard-setters and regulators can also benefit by recognising what potential regulatory changes could improve IRQ across firms of various sizes, risk levels and ownership structures. Originality/value Beyond traditional corporate governance mechanisms, risk management intensity, ownership concentration, institutional ownership and foreign ownership are novel factors that have received less attention as possible determinants of IRQ. The combined IR scoreboard and coding framework used offers a novel and robust approach to assessing IRQ.

The authors' abstract, as published at the source. Accounting Research Journal, 2026 · DOI ↗