3.3.3. Total Quality Index (TQLI)

This index was developed by [35,36] and then empirically tested by [73]. This multidimensional metric combines the SQNI score above, which measures relative quantity, with a "richness" metric. As you see from the equation above, volume and "richness" are equally weighted. "Richness" is the unweighted average of width and depth. Width is taken as the number of questions addressed in an annual report divided by the maximum score of 26 questions. For depth, each question is scored between 0 for no content and 4 for exceptional disclosure. Then these scores are summed before being divided by the number of questions answered—giving an average question depth score for the report. 0 is recorded for no disclosure, 1 for a general description, 2 for a specific narrative, 3 for quantitative information, whether financial or non-financial, and 4 for truly outstanding depth of disclosure. Two authors independently undertook a sample to make sure there was reasonable objectivity in this difficult judgement.
