THE EFFECT OF CORPORATE GOVERNANCE MECHANISMS ON INTEGRATED REPORTING: A STRUCTURAL EQUATION MODELLING (SEM) APPROACH

This study investigates the level of integrated reporting Malaysian listed companies and explores potential effects corporate governance mechanisms on reporting. The annual reports 150 main market, Bursa Malaysia, for year ended 2014 were examined to analyze companies' practices using content analysis. An index was constructed following key elements framework established by International Integrated Reporting Committee (IIRC). considered four mechanisms: board composition, size, diversity, ownership structure. used Multiple regressions measure impact initiatives. Structural Equation Modelling (SEM) effect results showed that financial non-financial information has not yet been integrated. Based SEM analysis, indicated only one variable, namely, associated with extent Board size most significant variable influenced public in 2014. contributes literature. It presents empirical evidence influence disclosure and, thus, providing additional data or will be significantly helpful other researchers. also stimulate interest academics research activities concerning characteristics activities. findings are limited context study. looks at as a critical driver uses report disclosures from single year.