THE IMPACT OF CORPORATE GOVERNANCE ON THE INTEGRATED REPORTING QUALITY OF INDONESIAN LISTED FIRMS: MODERATING ROLE OF CSR DISCLOSURE AND CORPORATE SUSTAINABILITY

Abstract

The primary objective of this study is to investigate the direct effect of corporate governance on the integrated reporting quality of Indonesian companies. In addition, the current study seeks to determine how CSR disclosure and corporate sustainability can mitigate the effect of corporate governance on the integrated reporting quality of Indonesian listed enterprises. From 2018 to 2022, the IIRC framework is utilized to analyze 142 Indonesian listed corporations, and a composite index based on the Indonesian Corporate Governance Perception Index is employed to assess corporate governance. Environmental, social, and governance (ESG) scores are used to evaluate corporate social responsibility (CSR) reports and the long-term survival of businesses. The study's findings are consistent with the anticipated outcomes, and the results indicate that publicly traded Indonesian companies can significantly enhance their integrated reporting by focusing on corporate governance. In addition, the study found that CSR disclosure and corporate sustainability mitigate the favorable association between corporate governance and integrated reporting quality. When organizations have high levels of CSR disclosure and corporate sustainability, the favorable influence of corporate governance on the quality of integrated reporting is strengthened, according to the findings. These findings suggest that efforts to improve corporate governance practices in Indonesian companies, particularly in the areas of transparency, accountability, and responsibility, all of which contribute to the quality of integrated reporting, and companies that invest in CSR initiatives by making corporate sustainability a top priority are more likely to produce high-quality integrated reports, which may inspire greater confidence among stakeholder groups. Our research contributes to IR, CG, CSR disclosure, and CS literature. It gives light on how policymakers, practitioners, and academics might improve the quality of IR in Indonesian-listed enterprises.