The Mediating Role of the Firm Image in the Relationship Between Integrated Reporting and Firm Value in GCC Countries

Mohammed Saleem Alatawi (), Zaidi Mat Daud and Jalila Johari
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Mohammed Saleem Alatawi: School of Business & Economics, Universiti Putra Malaysia, Serdang 43400, Malaysia
Zaidi Mat Daud: School of Business & Economics, Universiti Putra Malaysia, Serdang 43400, Malaysia
Jalila Johari: School of Business & Economics, Universiti Putra Malaysia, Serdang 43400, Malaysia

JRFM, 2025, vol. 18, issue 8, 1-24

Abstract: In the context of the GCC, the adoption of integrated reporting (IR) remains limited, due in part to weak regulatory enforcement, a lack of awareness of the strategic benefits of IR, and a strong focus on short-term financial results. This limited reporting context presents a significant challenge for firms to credibly demonstrate their value to the market and attract potential investors, thus communicating long-term value. Given these limitations, this study considers how IR contributes to firm value, but also examines the mediating role that firm image (FI) plays in this relationship as a reputational construct representing stakeholder perspectives of a firm’s transparency and accountability. The research employs a quantitative methodology, analysing secondary data from corporate governance and integrated reports spanning 2017–2018 to 2022–2023. Findings indicate a positive and robust relationship between integrated reporting and the firm’s value, which was assessed using Tobin’s Q. The findings highlight the significant mediating role of firm image, illustrating how IR practices, via increased transparency, accountability, and sustainability, enhance firm value. This study provides significant insights for researchers, policymakers, and corporate managers, highlighting the strategic relevance of IR in the GCC region. The findings demonstrate that integrated reporting improves transparency, accountability, and sustainability, thereby assisting corporate managers in utilising IR to enhance firm image and facilitate value creation. Policymakers can utilise these insights to develop regulatory frameworks that promote integrated reporting practices, thereby enhancing transparency and sustainable growth within the corporate sector.

Keywords: integrated reporting; firm value; firm image; International Integrated Reporting Framework; system GMM (search for similar items in EconPapers)
JEL-codes: C E F2 F3 G (search for similar items in EconPapers)
Date: 2025
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