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Determinants of materiality disclosure quality in integrated reporting: Empirical evidence from an international setting
Author(s) -
Gerwanski Jannik,
Kordsachia Othar,
Velte Patrick
Publication year - 2019
Publication title -
business strategy and the environment
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 2.123
H-Index - 105
eISSN - 1099-0836
pISSN - 0964-4733
DOI - 10.1002/bse.2278
Subject(s) - integrated reporting , readability , materiality (auditing) , accounting , affect (linguistics) , quality (philosophy) , business , sustainability reporting , sustainability , psychology , public relations , political science , corporate social responsibility , computer science , ecology , philosophy , communication , epistemology , biology , aesthetics , programming language
This study examines determinants of materiality disclosure quality (MDQ) in integrated reporting (IR) in an international setting. To this purpose, we constructed a novel, hand‐collected MDQ score in line with the guiding principles introduced by the International Integrated Reporting Council. On the basis of a cross‐national sample consisting of 359 firm‐year observations between 2013 and 2016, we find that MDQ is positively associated with learning effects, gender diversity, and the assurance of nonfinancial information in the integrated report. On the other hand, we find that IR readability, listing in the Dow Jones Sustainability Index, and earnings management do not affect MDQ. Our results are robust to different statistical models. We expand on earlier empirical findings on IR disclosure quality and provide valuable insights for research, practice, and standard setting.