Title: Integrated reporting and financial performance: evidence from Portugal and Spain

Authors: Carolina Costa; Inês Lisboa; José Luís Martins

Addresses: School of Technology and Management, Polytechnic University of Leiria, Campus 2, Morro do Lena, Apartado 4163, 2411-901 Leiria, Portugal ' Centre of Applied Research in Management and Economics, School of Technology and Management, Polytechnic University of Leiria, Campus 2, Morro do Lena, Apartado 4163, 2411-901 Leiria, Portugal ' School of Technology and Management, Polytechnic University of Leiria, Campus 2, Morro do Lena, Apartado 4163, 2411-901 Leiria, Portugal

Abstract: This work aims to evaluate the level of adherence to the information suggested by the international integrated reporting structure of the International Integrated Reporting Council (IIRC), by analysing financial reports information. Moreover, it intends to analyse the impact of this adherence on firms' financial performance, using an econometric model. For it integrated reports of Portuguese and Spanish firms between 2019 and 2021 are analysed. Results show that most of the firms in the sample disclose information suggested by the IIRC's international integrated reporting framework. However, the level of adherence does not directly impact financial performance. At an indirect level, the presence of external verification of non-financial information by a Big Four auditor positively influences financial performance. These results can be supported by legitimacy and institutional theories, as companies may publish non-financial information to obtain legitimacy for their activity from the society due to growing social, political, and economic pressures.

Keywords: International Integrated Reporting Council; IIRC; integrated reporting; financial performance; level of adherence; financial information; non-financial information; Portugal; Spain; external verification.

DOI: 10.1504/IJMFA.2026.150662

International Journal of Managerial and Financial Accounting, 2026 Vol.18 No.1, pp.105 - 124

Received: 29 Apr 2024
Accepted: 09 Jul 2024
Published online: 19 Dec 2025 *

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