From Finance to Impact: How Environmentally and Socially Responsible Investors Drive Integrated Reporting Globally

ABSTRACT

The interest of academics in Integrated Reporting (IR) has shifted over the years from identifying the determinants of its adoption to the factors that improve its quality. Among these, the ownership structure can play a fundamental role in its connection with companies' corporate governance and its influence on corporate disclosure. This study, through the analysis of 184 integrated reports, aims to increase the existing knowledge on the determinants of IR quality by analyzing its relationship with the presence of sustainable investors. Three types of investors are considered: the Principles for Responsible Investment (PRI) signatories, the investors with a long‐term perspective and the institutional investors. The results, interpreted in the light of the stakeholder theory and the institutional theory, demonstrate a positive effect of the presence of sustainable investors on the quality of the reports.