Determinants of integrated reporting disclosures of award-winning IR-adopted listed companies in Sri Lanka

Abstract

Integrated reporting adoption has been increased though it is not a mandatory requirement in many countries around the globe. However, the quality of the disclosures of IR differs between companies. Therefore, the study aims to determine what are the levels of integrated reporting disclosure alignment in annual reports by award-winning IR-adopted listed companies in Sri Lanka and to identify the factors influencing these disclosure levels. The study adopted the quantitative approach of the research. Using a disclosure index, the study assesses the extent to which firms' annual reports include the content elements mandated by the IR Framework. E-views software was used to analyze the quantitative data collected in the study and descriptive analysis, correlation, and regression analysis were performed to achieve the research objectives of the study. The sample consists of 50 award-winning listed companies in Sri Lanka and data was collected from annual reports of these companies from 2017 to 2021. The study will document that, on high, Award-winning listed firms disclose information required by the IIRC Framework. The disclosure levels will positively be associated with board size, board independence, foreign ownership, subcommittees, gender diversification, and financial acumen. The findings of the study will be useful to other non-award-winning companies to understand the characteristics of companies that won an award for IR. Further, the findings of the study provide some insights into the inclusion of the content elements required by the IIRF by the companies. The author offers policymakers recommendations based on their findings on the issue of regulating and implementing IR in Sri Lanka.