Business intelligence, governance and reporting quality: the roles of analytics, decision making and transparency

Wastam Wahyu Hidayat and Muhammad Asif Khan

International Journal of Managerial Finance, 2026, vol. 22, issue 5, 1157-1175

Abstract: PurposeThis study examines the extent to which business intelligence (BI) and corporate governance (CG) influence corporate reporting quality (CRQ) through a sequential process involving financial analytics, managerial decision-making and transparency.Design/methodology/approachThe study uses a balanced panel of 200 non-financial firms listed on the Indonesia Stock Exchange over 2020–2024, yielding 1,000 firm-year observations. Data are derived from structured content analysis of corporate disclosures, with construct scores calculated as arithmetic means of multiple item ratings. Pooled ordinary least squares (OLS) is used for the primary estimates, supported by fixed effects robustness checks and Sobel tests.FindingsThe findings reveal strong positive relationships among business intelligence, financial analytics, corporate governance, decision making, transparency and corporate reporting quality. Business intelligence strengthens financial analytics and decision making, while corporate governance and financial analytics enhance decision making. Corporate governance and decision making positively influence transparency, whereas financial analytics and decision making significantly improve reporting quality. In contrast, transparency shows a negative and marginally significant association with reporting quality (ß = −0.0501, p = 0.0989). Robustness and mediation tests confirm the stability of the principal relationships.Research limitations/implicationsThe study is limited to firms in a single emerging economy and uses observational disclosure data. Reverse causality, simultaneity and omitted variable bias cannot be ruled out, so the estimates should be interpreted as associations rather than causal effects. Future research should test the model across different institutional environments.Practical implicationsThe findings of this study highlight that BI and governance investments should be understood as long-term strategic enablers. Managers should focus on strengthening analytics capability, decision quality and transparency as interconnected drivers of reporting integrity. Policymakers are encouraged to evaluate governance reforms based on improvements in informational discipline and trust rather than short-term financial performance outcomes, particularly in emerging market contexts.Social implicationsOur study suggests that improvements in business intelligence and corporate governance contribute to higher transparency and reporting quality, which strengthen stakeholder trust and accountability in capital markets. Over time, this can enhance public confidence in firms, support more informed investment decisions and promote more stable and credible market systems in emerging economies.Originality/valueThis study develops a process-oriented framework that explains how business intelligence and corporate governance relate to corporate reporting quality through financial analytics, decision making and transparency. It also provides supplementary evidence from fixed effects robustness checks and formal mediation tests.

Keywords: Business intelligence; Corporate governance; Financial analytics; Decision-making; Transparency; Corporate reporting quality (search for similar items in EconPapers)
Date: 2026
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Persistent link: https://EconPapers.repec.org/RePEc:eme:ijmfpp:ijmf-04-2026-0242

DOI: 10.1108/IJMF-04-2026-0242

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