Impact of board characteristics on integrated reporting: evidence from South Asian countries

Abstract

Purpose

The purpose of this study is to observe the practice of integrated reporting (IR) and investigate the impact of board characteristics on IR in three South Asian economies: Bangladesh, India and Sri Lanka.

Design/methodology/approach

The study uses the content analysis approach to measure the integrated reporting index (IRI) based on a structured checklist. To examine the impact of board characteristics (board size, board independence and gender diversity) on IRI, a multivariate analysis using pooled ordinary least square with panel-corrected standard error (PCSE) model has been conducted.

Findings

The content analysis findings show that the disclosure practice of IR is highest in India, followed by Sri Lanka and Bangladesh. The regression result indicates that all the proxies of board characteristics have a positive and significant impact on IRI.

Research limitations/implications

The study’s outcomes may not be generalised for every region due to the differences in institutional contexts.

Practical implications

The findings of this study will assist the policymakers in understanding the importance of effective boards in enhancing the IR practice in their respective countries where the adoption of IR is still a voluntary requirement.

Originality/value

To the best of the authors’ knowledge, this is the first study in the field of existing literature to conduct a comparative analysis of IR practice among three South Asian countries. It shows how an effective board improves IR practice using a broader institutional context by underpinning the agency theory and legitimacy theory.