Firm-Level Factors Associated with Integrated Reporting Quality in a Sustainability Context: Evidence from an Emerging Economy

This study examines the firm-specific factors associated with the level and quality of compliance with the International Integrated Reporting Framework (IIRF) among companies in the United Arab Emirates (UAE), an emerging economy characterized by a growing sustainability-oriented institutional context. Although the Securities and Commodities Authority (SCA) mandates listed companies to publish an integrated report, it does not prescribe a specific reporting framework. As a result, alignment with the IIRF and the depth of disclosure remain largely discretionary. Using a sample of 89 non-financial firms listed on the Dubai Financial Market (DFM) and Abu Dhabi Securities Exchange (ADX), an Integrated Reporting Disclosure Score (IRDS) was constructed through content analysis based on 43 criteria derived from the IIRF. Regression and dominance analyses were employed to examine the relationship between firm characteristics and the level of IIRF compliance. The results indicate that firm size, profitability, board size, and gender diversity are positively associated with higher levels of IIRF alignment and disclosure quality, while financial leverage and board independence are not significantly associated with disclosure levels. The dominance analysis further shows that firm size, board size, gender diversity, and profitability account for the majority of the model’s explanatory power. Overall, the findings contribute to the literature by providing empirical evidence on voluntary compliance with international integrated reporting standards beyond mandatory reporting requirements in an emerging market context.