Integrated Reporting Items and Agency Cost Reduction: An Analysis of the Role of Audit Quality

Document Type : Research Paper

Authors

1 Accounting and Financial Management Dept., Faculty of Economics and Management, Urmia University, Urmia, Iran

2 Accounting and Financial Management Dept., Faculty of Economics and Management, Urmia University, Urmia, Iran,

Abstract

This study investigates the impact of integrated reporting quality on agency costs and the mediating role of audit quality. Integrated reporting, a novel approach, discloses financial and non-financial information, clarifying their interconnections and reducing information asymmetry. Data from 160 companies listed on the Tehran Stock Exchange from 2017 to 2023 were examined using ordinary least squares (OLS) regression and mediation tests. The results show that higher integrated reporting quality negatively affects agency costs and positively affects audit quality. Furthermore, integrated reporting quality reduces agency costs by enhancing audit quality. Although Iranian companies have not adopted integrated reporting, improving financial and non-financial disclosure quality (Integrated reporting categories) through enhanced auditing can reduce agency costs and increase transparency.

Keywords

Main Subjects

References

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Journal of Accounting Advances
Volume 17, Issue 1
2025
Pages 1-44

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History

  • Receive Date: 12 March 2025
  • Revise Date: 17 June 2025
  • Accept Date: 24 July 2025

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