The moderating role of board gender diversity on the association between audit committee attributes and integrated reporting quality

Abstract

Purpose The main objective of the research is to examine the infuence of audit committee attributes on the inte‑ grated reporting quality (IRQ) and to investigate whether this association is moderated by board gender diver‑ sity in the manufacturing and non-manufacturing sectors. The study specifcally investigates the association between audit committee independence, meetings frequency, fnancial expertise, audit committee size, and inte‑ grated reporting quality. Design/methodology/approach The data collection was from the fnancial statements and corporate governance reports of 54 Egyptian frms listed on the stock market [EGX100] for the period of 2018–2022. The study used pooled efect modelling and performed data analysis using the STATA software. Findings For the manufacturing sector, the results showed a signifcant impact of audit committee independence and meetings frequency on IRQ, while audit committee size and fnancial expertise showed insignifcant associa‑ tion with IRQ. Board gender diversity moderates the association between audit committee meetings only and IRQ. In contrast, audit committee fnancial expertise and meetings frequency signifcantly impact IRQ, while audit com‑ mittee independence and size showed an insignifcant impact on IRQ in the non-manufacturing sector. Also, board gender diversity moderates the association between audit committee and IRQ. The fndings highlight the signif‑ cance of AC attributes and provide guidance to frms to strengthen their audit committees in order to provide high quality of integrated reports to increase investor trust in the Egyptian business environment as it is now mandatory by the government. Originality/value This research ofers unique perspectives on the association between variables in Egypt. This study is one of the frst investigations on the impact of audit committee attributes and board diversity on integrated report‑ ing quality within the context of Egyptian listed companies. Comprehending the ways in which audit committee attributes impact the integrated reporting quality in the manufacturing and non-manufacturing sectors can enable organizations to devise focused approaches that comply to the unique operational, regulatory, and investor demands in each sector.