THE INTEGRATED REPORTING AND FIRM VALUE WITH FIRM IMAGE MEDIATION AND CEO INTEGRITY MODERATION IN GULF COOPERATION COUNCIL COUNTRIES

Abstract

The study investigates the relationship between Integrated Reporting (IR) and the firm value of firms listed on the stock exchanges of GCC countries- Saudi Arabia, Oman, Qatar, Bahrain, Kuwait, and the United Arab Emirates highlighting the mediating role of firm image and the moderating role of CEO integrity. This research stems from the lack of empirical research detailing integrated reporting practices in the GCC region where integrated reporting is still largely considered voluntary and under-researched. This is particularly relevant given the increasing emphasis on integrity and sustainability around corporate governance. The study used secondary data from 177 firms for the period of six years (i.e., 2017 to 2023). Based on the panel data technique and the System Generalized Method of Moments (GMM) estimation technique, the results demonstrate that IR has a positive and significant effect on firm value at the 1% level, which suggests that firms can enhance their market value by adopting IR practices. In addition, the outcome of the study also indicates that firm image plays a significant mediating role in the relationship between IR and firm value. Moreover, CEO integrity had a significant moderation effect in the relationship between IR and firm value, where ethical leadership bolsters the credibility of integrated disclosures and enhances trust from investors. The research outlines relevant practical implications for various stakeholders. Policymakers and regulators are introduced to the idea that promoting IR adoption may require formalized disclosure frameworks consistent with the International Integrated Reporting Framework (IIRF). Corporate board members and executives are encouraged to add ethical leadership, transparency, and sustainability objectives to their firms' envelopes to improve stakeholder trust and firm performance. For the investor community, IR should be viewed as a committed signal of governance quality and long-term value creation. Finally, the study connects to the United Nations Sustainable Development Goals (SDGs), specifically SDG 8 (Decent Work and Economic Growth) by noting how transparent reporting promotes sustainable economic progress and productivity, and SDG 12 (Responsible Consumption and Production) which encourages firms to be forward-thinking and disclose their sustainability initiatives, and resource-efficient practices. Overall, the study provides useful empirical evidence of how IR creates firm value as a function of ethical leadership and corporate reputation in the GCC context.