Integrated reporting quality and firm value: the moderating role of investment efficiency in an emerging market

PurposeDespite growing attention to integrated reporting (IR) as a governance mechanism for improving corporate disclosures and delivering potential benefits – particularly in emerging markets – there is little evidence of its impact on capital allocation and value relevance. This study examines whether higher investment efficiency enhances firm value and whether it strengthens the association between IR quality and firm value in an emerging market context.Design/methodology/approachDrawing on panel data from 617 firm-year observations of Thai-listed firms between 2019 and 2023, the results demonstrate the robustness of the ordinary least squares (OLS) regression and generalised method of moments (GMM) approach.FindingsHigher investment efficiency, by mitigating overinvestment and underinvestment, enhances firm value. The association between IR quality and firm value is stronger for firms with higher investment efficiency, suggesting that firms allocating capital more effectively derive greater benefits to firm value from IR quality.Practical implicationsIntegrating valuation considerations into a high-quality IR framework can enhance corporate disclosures, promote efficient capital allocation and contribute to firm value, guiding managers, policymakers and regulators.Social implicationsHigh-quality integrated reports benefit both firms and capital markets, encouraging responsible corporate practices and supporting more efficient capital allocation decisions.Originality/valueDrawing on Thailand's mandatory IR (“one report”) setting, this study, among empirical studies on IR quality and firm value, provides evidence on how this association could move beyond general sustainability disclosures to actively influence efficient capital allocation and enhance market transparency.