The Effect of Digital Transformation on Integrated Reporting Quality: Evidence from Saudi Listed Companies Pre-and Post-COVID-19

Abstract

Integrated Reporting (IR) aims to present a holistic view of value creation by combining financial and non-financial information, including sustainability and ESG indicators. However, during the COVID-19 pandemic, companies in Saudi Arabia faced challenges related to delays in disclosure, limited transparency in non-financial information, and difficulties in providing timely and integrated reports due to operational disruptions and remote reporting systems. This study examines the impact of digital transformation on integrated reporting quality, the influence of pre-vs. post-COVID conditions, and the moderating effect of COVID-19 on the relationship between digital transformation and IR quality. Using a quantitative longitudinal approach, panel data from firms listed on the Saudi Stock Exchange (Tadawul) were analyzed using Stata over the periods before and after the pandemic (2018–2019 vs. 2020–2021/2022). The results reveal that digital transformation significantly improves IR quality, IR quality differs significantly between the pre-and post-COVID periods, and COVID-19 strengthens the relationship between digital transformation and IR quality. These findings highlight the importance of advanced digital technologies to enhance transparency, speed, and reliability in corporate reporting.