Abstract:
The study sought to assess the influence of integrated reporting practices on
the financial reporting quality of listed firms in Ghana, and the moderating
effect of corporate Sustainable Development Goals (SDG) reporting on the
relationship between integrated reporting and financial reporting quality of
listed in Ghana. The criterion sampling technique was used to select twentyone
(21) listed firms in the banking and manufacturing sectors. Using a
quantitative research approach and an explanatory research design, content
analysis of the annual reports of selected firms (from 2016 to 2020) was
employed as the main data collection instrument as disclosure indexes were
developed to extract panel data on the study variables. The data obtained was
processed and analyzed using Eviews. Both descriptive (frequencies) and
inferential (the System Generalized Method of Moments (GMM) regression
panel estimator) methods were employed. The findings demonstrate a high
level of adherence (57.14%) of firm annual reports to all three dimensions of
the IIRC integrated reporting framework. Integrated reporting and corporate
SDG reporting both had a significant positive effect on the financial reporting
quality of listed firms, with corporate SDG reporting having a statistically
significant moderating effect. Consequently, it was recommended that
regulatory authorities create a Ghanaian adaptation of the IIRC integrated
reporting framework and mandate the publication of integrated reports for
listed firms in Ghana. Management and those in charge of governance of listed
firms are also urged to act to enhance integrated reporting practices and SDG
disclosures in their corporate reporting policies.
