The Digitalisation of Integrated Reporting and Its Benefits for Corporate Governance: Evidence from Romania

Abstract

The acceleration of digitalization processes has generated significant transformations in corporate reporting practices and in the functioning of governance mechanisms. In this context, integrated reporting, supported by digital solutions, has become an increasingly frequent tool to improve the transparency and quality of information used in decision-making processes. This study analyses the relationship between the digitalization of integrated reporting and corporate governance within companies in Romania, with a focus on the role of organizational transparency in explaining this relationship. The research adopts a quantitative approach, based on data collected through a standardized questionnaire applied to a sample of 210 companies in Romania. The measurement instruments are built on scales validated in international literature, and the data analysis is performed through structural equation modeling, an appropriate method for investigating the complex relationships between the analysed variables. The results indicate the existence of a positive relationship between the digitalization of integrated reporting and organizational transparency, as well as a favourable influence on the quality of corporate governance. The analysis shows that organizational transparency is a middleman in the relationship between digitalization of integrated reporting and corporate governance. This means that digitalization has an effect on how information is combined and used in management processes. From a theoretical perspective, the study contributes to the literature on integrated reporting and corporate governance by clarifying the information mechanisms associated with digitalization in an emerging economy context. From a practical perspective, the results provide relevant benchmarks for managers and decision-makers interested in strengthening organizational transparency and accountability.