Impact of Integrated Sustainability Reporting for Enhancing Stakeholder Engagement and Driving Business Value

Abstract

This study investigates the relationship between Integrated Reporting Quality (IRQ) and Stakeholder Value Creation (SVC), and further examines whether Sustainability Governance (SG) moderates this relationship. Utilizing a panel dataset the study applies Random Effects Modeling (REM) with robust standard errors. Descriptive analysis revealed a generally high level of integrated reporting adoption and moderate sustainability governance practices across the sample. The regression results demonstrate that IRQ has a significant positive impact on SVC, suggesting that transparent and strategic corporate disclosures enhance both financial and non-financial stakeholder outcomes. However, the moderating effect of SG on the IRQ and SVC relationship was statistically insignificant indicating that the influence of IRQ on value creation operates independently of existing governance structures. These findings validate theoretical claims from team production and signaling theories and emphasize integrated reporting as a critical mechanism for building stakeholder trust and long-term organizational value. The study also identifies the need for deeper institutionalization of SG practices and recommends broader frameworks to measure stakeholder impact.