The Impact of Integrated Reporting on the Cost of Capital: Evidence from an Emerging Market

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PİRGAİP B., Rizvić L.

Journal of Risk and Financial Management, vol.16, no.7, 2023 (ESCI) identifier

  • Publication Type: Article / Article
  • Volume: 16 Issue: 7
  • Publication Date: 2023
  • Doi Number: 10.3390/jrfm16070311
  • Journal Name: Journal of Risk and Financial Management
  • Journal Indexes: Emerging Sources Citation Index (ESCI), Scopus, ABI/INFORM, EconLit, Directory of Open Access Journals
  • Keywords: Borsa Istanbul, cost of capital, ESG, integrated reporting
  • Hacettepe University Affiliated: Yes


The aim of this study is to investigate the influence of integrated reporting (IR) on the cost of financing within the Turkish capital market. Specifically, we analyze the effects of IR on the weighted average cost of capital (WACC), cost of equity (COE), and cost of debt (COD) for companies listed on Borsa Istanbul. Additionally, we explore how IR moderates the relationship between environmental, social, and governance (ESG) scores and the cost of financing. Our panel data analysis reveals a positive association between IR and both WACC and COD, while the impact on COE is not statistically significant. However, the findings suggest that the utilization of IR by companies to enhance the communication of their value-creating activities can mitigate WACC and COD, thus indicating a moderating effect on the relationship between ESG factors and the cost of financing.