Abstract
Integrated reporting (IR) represents the last frontier of corporate disclosure and aims to include material financial and nonfinancial information in a single document. One of the main objectives of IR, in the idea conceived by the International Integrated Reporting Council (IIRC), is to provide recipients with written information in a clear, understandable, and accessible way. In light of this goal, this study, using stakeholder theory, aims to examine the readability of integrated reports and the factors capable of affecting this level of readability. The analysis, conducted on a sample of 221 international companies that published an integrated report in 2020, shows a low level of readability of the integrated reports examined. Furthermore, it demonstrates a positive effect of firm size and financial leverage on the level of readability of the integrated reports, also highlighting a nonsignificant impact of firm profitability. Our results offer important contributions to theory and practice.
