Board Characteristics and Quality of Integrated Reporting of Firms Listed Nairobi Securities Exchange

Abstract

Companies that opt for integrated reporting are in a favorable position to enhance a range of benefits,whether internal or external in nature. It encompasses improvements in resource allocation, shareholderengagement, and reputation. On the other hand, external advantages pertain to investors who rely ongovernance disclosure, as well as compliance with regulations, frameworks, standards, and guidelines setby stock exchanges. The expansion and adoption of integrated reporting are broadening its scope, with anincreasing number of companies showing willingness to adopt this approach. The diffusion and adoptionof reporting practices stem from diffusion theory, which has evolved from institutional theory,encompassing institutional factors that influence organizational behavior. The positive and statisticallysignificant relationships between board characteristics highlight how crucial it is for publicly tradedcorporations to work to improve the independence of their boards of directors while also includingmembers with financial expertise to facilitate the disclosure of both financial and non‐financial information.The findings are significant especially in the implementation of board decisions, strategic planning, and inmanaging corporate governance attributes in the attempts to enhance information disclosure through theimplementation of integrated reporting.