THE ROLE OF INTEGRATED REPORTING IN ENHANCING THE VALUE OF THE ECONOMIC UNIT: AN ANALYTICAL STUDY OF THE OPINIONS OF ACADEMICS AND AUDITORS IN THE KURDISTAN REGION OF IRAQ

Abstract

IR serves as the strategic communication vehicle that combines a company’s mission, vision, long-term objectives and short-term actions. It also helps the entity to link ESG-related matters with financial performance, acting as a holistic model for value creation communication to stakeholders and empowers them to assess the organization’s long-term prospects and performance.

This paper aims to explore the role of IR in value creation by reviewing previous academic research and conducting a structured questionnaire addressing to an academic and professional auditor sample in the Kurdistan Region of Iraq. The findings show a significant and positive relationship between the adoption of IR and the creation of economic value at firm level. Significantly, by having IR, the disclosure system becomes more integrated and timely (both financial and non-financial) in nature, allowing greater transparency and credibility of corporate evaluations.

The study recommended that financial market regulators and international professional bodies in the domain of accounting and auditing should formulate and implement enforceable rules and complimentary voluntary frameworks in the light of the aforesaid insights. These are the frameworks that are compatible with the International IR Framework. The fact that meeting disclosure standards is a requirement for listing on capital markets is also highlighted in the study.