Unlocking corporate sustainability: the synergistic effects of integrated reporting and ownership concentration

Purpose This study aims to explore the potential effects of Integrated Reporting Quality (IRQ) on firm value and sustainability. Specifically, it investigates whether higher IRQ significantly affects various financial and non-financial dimensions of firm performance (FP). Additionally, it examines the moderating roles of ownership concentration (OC) and the mandatory adoption of Integrated Reporting (IR) in the IRQ–FP relationship. Design/methodology/approach The study draws on 108 integrated reports from European and South African companies over the 2017–2019 period. Using the International Integrated Reporting Council (IIRC) framework, the paper applies content analysis to assess 5,724 disclosure items and constructs a novel comprehensive IRQ metric. Findings The findings document a positive and significant effect of IRQ on firm value and sustainability. Furthermore, the results indicate that the impact of IRQ is considerably stronger under conditions of higher OC, particularly within a mandatory IR regime. Originality/value This research contributes to the literature by empirically examining the consequences of IRQ for sustainability performance. In addition, the introduction of a novel and reliable IRQ metric strengthens the rigor and credibility of the analysis. To the best of the authors’ knowledge, this is the first paper to investigate how OC moderates the link between IRQ and FP. The study also explores the differential effects of IRQ across diverse geographical and legal contexts and highlights the critical role of IRQ, particularly under mandatory IR, in driving firm value and sustainability.