Ownership structure and integrated reporting quality: empirical evidence from an emerging market

Abstract

Purpose

This paper aims to explore the role of ownership structure on integrated reporting quality (IRQ) in an emerging market.

Design/methodology/approach

This study includes a sample consisting of 64 firms from Bursa Malaysia, with 173 firm-year observations from 2017 to 2020. Feasible Generalised Least Square model has been used to test the hypotheses.

Findings

The findings show that government ownership has a positive effect on IRQ and that the integrated reports and <IR> framework are well aligned. Foreign ownership influences IRQ positively. However, the results did not support the effect of family ownership on IRQ as hypothesised.

Practical implications

The findings of this research hold practical implications for companies and regulators in Malaysia. The results demonstrate to investors that both government and foreign ownership have a positive impact on IRQ. Therefore, investors can make well-informed investment decisions regarding companies with a high level of government or foreign ownership.

Originality/value

To the best of the authors’ knowledge, this is the first paper to explore the effect of ownership structure on IRQ in the Malaysian context.

Citation

Fayad, A.A.S., Mohd Ariff, A.H.B., Ooi, S.C., Aljadba, A.H.I. and Albitar, K. (2024), "Ownership structure and integrated reporting quality: empirical evidence from an emerging market", Journal of Financial Reporting and Accounting, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/JFRA-02-2024-0101