Estimation of the Integrated Reporting Quality Model with an Environmental, Social, and Governance (ESG) Approach
Keywords:
Integrated reporting, fuzzy Delphi, partial least squares, corporate sustainability, corporate governanceAbstract
The present study aims to estimate and explicate a model of integrated reporting quality based on an environmental, social, and governance (ESG) approach. In the first stage, a set of initial indicators of integrated reporting quality was identified through the analysis of in-depth expert interviews and a systematic review of the research literature. Subsequently, to screen, validate, and achieve expert consensus, the fuzzy Delphi technique was employed. For this purpose, the perspectives of 18 experts in the fields of reporting, accounting, sustainability, and corporate governance were collected over three rounds of fuzzy Delphi and analyzed using triangular fuzzy numbers. The results of the fuzzy Delphi indicated that all 35 identified indicators possessed sufficient importance, with the defuzzified values of all indicators exceeding the threshold level of 0.7. Furthermore, the examination of the mean differences between the second and third Delphi rounds demonstrated an appropriate convergence of expert opinions and the fulfillment of the stopping criterion for the Delphi process. To assess the degree of agreement among experts, Kendall’s coefficient of concordance was utilized, the results of which indicated a significant increase in the level of consensus and agreement in the final rounds. In the quantitative section of the study, data were collected through a questionnaire from a sample of 466 respondents. The demographic characteristics of respondents in terms of gender, age, and education level were examined, confirming an appropriate sample distribution. Descriptive statistics indicated that the mean values of environmental, social, and governance indicators were at a relatively high level. The Kolmogorov–Smirnov test also confirmed the normality of data distribution. For inferential data analysis, structural equation modeling using the partial least squares approach was applied. The results of the measurement model evaluation indicated that the constructs possessed satisfactory reliability and validity, as Cronbach’s alpha, composite reliability, average variance extracted (AVE), and the HTMT index were all within acceptable ranges. Additionally, the absence of multicollinearity among variables was confirmed using the variance inflation factor (VIF). In the structural model, the results indicated that environmental, social, and governance indicators had a positive and significant effect on integrated reporting quality. The coefficient of determination demonstrated an acceptable level of explained variance for the dependent variable, and overall model fit indices confirmed the appropriate fit and strong predictive power of the model. Finally, the results of the importance–performance map analysis (IPMA) indicated that governance indicators had the highest level of importance, while environmental indicators exhibited the highest level of performance. The findings of this study can provide a practical foundation for improving integrated reporting quality and for supporting decision-making by managers, policymakers, and stakeholders in the domains of sustainability and corporate governance.
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Copyright (c) 2025 Saber Majzoob (Author); Ali Najafi Moghadam (Corresponding author); Mohsen Hamidian (Author)
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
