Integrated audit reporting and stock market efficiency: Evidence from a five-dimensional framework across developed and emerging markets

Purpose: This study examines how integrated audit reporting enhances stock market efficiency by extending the informational role of the auditor’s report beyond traditional compliance. It develops and empirically tests a five-dimensional integrated audit reporting framework that captures financial, governance, risk, narrative, and assurance-related disclosures. Methodology, Design, and Approach: Using a comparative cross-country research design, the study analyzes publicly listed firms from an emerging market (Egypt) and two developed markets (the UK and the USA). The empirical analysis applies structural equation modeling (SEM) and multivariate regression techniques to assess the relationship between integrated audit reporting quality and multiple measures of stock market efficiency, while controlling for firm-specific and institutional factors. Findings: The results demonstrate that higher-quality integrated audit reporting significantly improves stock market efficiency by reducing information asymmetry, enhancing price discovery, and strengthening investor confidence. The effects are more pronounced in emerging markets, where institutional information gaps are relatively higher, but remain statistically significant across developed markets. Originality and Value: This study contributes to the auditing literature by moving beyond single-dimension audit reporting measures and offering a validated five-dimensional framework with strong explanatory power across different institutional contexts. Theoretical, Practical, and Social Implications: The findings extend agency and signaling theories by positioning audit reporting as an active governance and market-informing mechanism. Practically, the study provides guidance for auditors, regulators, and standard-setters on enhancing audit report content. Socially, improved audit reporting supports fairer, more transparent capital markets and strengthens public trust in financial information.