A multidimensional analysis of integrated reporting practice and its impacts on firms’ valuation : evidence from Sub-Saharan Africa

Abstract

Integrated Reporting (IR) has gained prominence across Sub-Saharan Africa (SSA) as a mechanism for promoting transparency and accountability, yet firms continue to face high capital costs and a persistent quality gap amongst investors and lenders. This study investigates how organisational culture and audit quality mechanisms influence IR quality and whether these factors shape firms’ equity valuation and leverage outcomes. Grounded in a multitheoretical foundation, drawing from the Resource-Based View, Legitimacy, Institutional, Stakeholder and Contingency theories, the research examines when and how IR generates value within SSA’s institutional environment. The inquiry began with a systematic literature review and meta-analysis of 40 empirical studies (2015 - 2024), mapping the determinants, constraints and impacts of IR across SSA. This synthesis identified key evidence gaps and informed the design of the empirical models. The quantitative phase employed a balanced panel of 67 listed SSA firms over 2014 - 2023, using Bloomberg. Econometrics modelling alongside Fixed Effects, Random Effects and with robustness checks were applied to test the study’s hypotheses. Results indicate that only signals that are both costly and diagnostic enhance IR quality. Lower voluntary staff turnover and stable audit fee trajectories significantly improved disclosure quality, while inflated audit committee meeting counts and audit fee volatility carried limited informational value. Equity markets rewarded IR quality reinforced by cultural stability, whereas debt markets valued assurance proportionality penalising extended auditor tenure. These findings are synthesised into a multi-theoretical IR Framework for SSA, linking four interrelated domains, Drivers, Constraints, Strategic Outcomes, and Impacts on Performance, with organisational culture and audit quality acting as moderators between adoption and outcomes. The framework demonstrates that IR effectiveness in SSA is context-dependent, relying on institutional maturity and credible cultural and audit supports. The study contributes empirically by providing large sample evidence connecting IR quality to financing structures in SSA Practically, it offers a policy relevant framework that boards, auditors, regulators, and investors can use to strengthen IR quality and market trust.