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Board characteristics and integrated reporting quality: evidence from ESG European companies

Salim Chouaibi (University of Sfax, Sfax, Tunisia)
Yamina Chouaibi (University of Sfax, Sfax, Tunisia)
Ghazi Zouari (University of Sfax, Sfax, Tunisia)

EuroMed Journal of Business

ISSN: 1450-2194

Article publication date: 17 May 2021

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Abstract

Purpose

The aim of this study is to analyze the possible relationship between board characteristics and integrated reporting quality in an international setting.

Design/methodology/approach

To test the study's hypotheses, the authors applied linear regressions with a panel data, and the authors collected data from the Thomson Reuters database (ASSET4) and from the annual reports from European companies to analyze data of 253 listed companies selected from the environmental, social and governance (ESG) index between 2010 and 2019.

Findings

The reached empirical results prove to indicate well that both of the board size, independence and diversity appear to have a significantly positive effect on the integrated reporting quality. Noteworthy, also, is the fact that the appointment of an independent nonexecutive chairman is positively associated with the integrated reporting related quality, and holds for firms with a nonindependent chairman.

Practical implications

Beyond the theoretical implications, our study also has several practical implications. These findings are particularly relevant for managers, shareholders, and policymakers. Thus, stakeholders should consider the accuracy of disclosure in determining the optimal reporting strategy (reducing risk estimation, returns' stock volatility, increasing long-term shareholder value and reputation of the firm).

Originality/value

This article is motivated by the low number of works in the context about the corporate social responsibility and sustainability issues. It makes an important contribution to the academic literature by adding to the limited body of research on integrated reporting and corporate governance in an ESG company setting. The study is also important for practitioners seeking to improve the quality of their integrated reports.

Keywords

Acknowledgements

The authors would like to thank the editor and the two anonymous referees of the EuroMed Journal of Business for their insightful comments that have greatly benefited the paper.

The author(s) received no financial support for the research, authorship and/or publication of this article.

Citation

Chouaibi, S., Chouaibi, Y. and Zouari, G. (2021), "Board characteristics and integrated reporting quality: evidence from ESG European companies", EuroMed Journal of Business, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/EMJB-11-2020-0121

Publisher

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Emerald Publishing Limited

Copyright © 2021, Emerald Publishing Limited

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