LAUSR

This study aims to examine the effect of the board of directors effectiveness on the level of integrated reporting disclosure. The study also examined the effect of the level of disclosure on integrated reporting on cost of equity. Further, examine the effect of the board of directors effectiveness on cost of equity through the level of disclosure of integrated reporting. Board of directors effectiveness which is a corporate governance structure can be seen from the components of independence, activity, size and competence. Hypothesis testing is carried out by using a Structural Equation Modelling (SEM) model of 373 observations (firm-year) with the sample taken from more than 20 Organization for Economic Co-operation and Development (OECD) countries where the companies listed on The International Integrated Reporting Council (IIRC) during the period 2015-2017. The results of this study evidence that the level of integrated reporting disclosure has an effect on reducing the company cost of equity. However, the result for the influence of the board of directors effectiveness are still mixed. The findings indicate that the effectiveness of the board of directors does not affect the level of integrated reporting disclosure. And there is no significant influence between board of directors effectiveness, level of integrated reporting disclosure and cost of equity. Perhaps one of the factors for this lack of influence is that the sample data in this study are companies that are still voluntarily disclosing their integrated reporting so that the board of directors still does not feel pressured to disclose integrated reporting. And in the end it cannot yet be seen in relation to the decrease in equity costs.