Tracing Integrated Reporting in India: A Longitudinal Study of Adoption and Compliance

Aim/Purpose: This study aims to evaluate the trend in the adoption and implementation of integrated reporting (IR) by selected Indian companies in line with the Integrated Reporting Framework ( Framework) over the past five years, from 2019-20 to 2023-24. Background: Although the growing movement towards voluntary adoption of integrated reporting by Indian firms is evident through the expanding figures, it remains at a budding stage in India, stressing the need to analyze reporting practices in terms of the extent of the Framework’s compliance by Indian firms as well as the rate of adoption. Methodology: The study analyzed the quality of integrated reports from 32 firms over five years using content analysis with the Integrated Reporting Disclosure Index. In addition, descriptive charts and the chi-square test were employed to support the empirical analysis. Contribution: The study integrates legitimacy, stakeholder, and institutional theories to explain the observed patterns. The findings suggest that improvements in integrated reporting practices are driven by a combination of legitimacy-seeking behavior, stakeholder pressures, and institutional influences, including regulatory encouragement by SEBI and normative guidance from professional bodies. Findings: The findings reveal that while the Framework’s adoption has increased over time, only 53% of the sampled firms published integrated reports by 2023–24, indicating partial diffusion of the Framework. In contrast, disclosure quality shows a consistent upward trend, with nearly 50% of firms achieving IRQ scores in the range of 0.80–0.85, reflecting substantial improvements in reporting practices. Significant variation in disclosure was reported in the study, such as in the disclosure of governance, strategy, and resource allocation by Indian companies, restraining stakeholders’ intellectual capacity to value created over time. Recommendations for Practitioners: To promote more rigorous implementation of the Framework with value-added disclosure quality, there is an evident need for a robust, focused regulatory framework. From a regulatory standpoint, the data support the creation of stronger, more focused policy frameworks to promote broader adoption and enhance disclosure uniformity. Recommendation for Researchers: The researchers may focus on analyzing the association between integrated reporting disclosures and firm value or performance. Researchers can focus on analyzing the key determinants influencing the Framework’s adoption and the IRQ. Impact on Society: The study offers a benchmark for enhancing reporting quality for practitioners and other stakeholders, such as investors and the general public, strengthening transparency, competitiveness, and well-informed decision-making. Future Research: Future studies could be conducted, aimed at cross-country comparative analyses based on India and other emerging economies, incorporating both financial and non-financial sectors, to provide a more inclusive representation of integrated reporting practices and their consequences.