How Board Financial Expertise and Effectiveness of Audit Committee Influence Quality of Integrated Reporting: Firms Listed in Nairobi Securities Exchange

Integrated reporting in corporate reporting is recognized as a powerful tool for accurately portraying acompanyʹs ability to create value over time. Despite gaining attention from professionals and scholars,there is limited exploration into the quality of integrated reporting and its determinants. Financial expertiseamong board members is crucial for effective oversight of integrated reports, which contain both financialand non‐financial information, highlighting the importance of board members possessing financialknowledge. Further, audit committee functionality promotes information disclosure among listed firms. Itunderscores the significance of enhancing audit committee effectiveness to improve the quality ofintegrated reporting, as evidenced by the strong correlation observed between audit committeeeffectiveness and integrated reporting quality. Companies should focus on strengthening the effectivenessof audit committees by ensuring that they comprise members with strong financial expertise andexperience. This can be achieved by appointing individuals with relevant qualifications and experience inauditing, accounting, and financial management to the audit committee.