Value Relevance of Integrated Reporting In Nigeria: An Evaluation of Investors’ Perception

In today’s increasingly complex, competitive and uncertain market environment, stakeholders are constantly seeking to get as much information on corporate organizations as they can to aid informed decisions relating to such organizations. Integrated reporting is progressively gaining traction since it encompasses both financial and non-financial information. This research aimed to empirically assess the significance of integrated reporting content aspects in influencing investors' decision-making within listed banks in Nigeria. The analysis consisted of content elements including organizational overview, business model, risk assessment, disclosure of resource distribution, and forward-looking disclosures. It applied annual reports from five top banks listed in the Nigerian Exchange Group (NGX) and extracted data using a checklist guided by the Integrated Reporting Framework 2021. Data was analyzed by regression analysis, taking into account the P/E ratio and market capitalization from 2014 to 2023 as benchmarks in the measurement of stakeholders’ perceptions. Findings revealed that the overall model for both hypotheses was significant but none of the individual content elements of IR showed a statistically significant effect on MKPF. In the case of the price-earnings ratio, only the organizational overview and Risks and Opportunities disclosures showed a statistically significant effect on PER. The study attributed this lack of value relevance to a low level of awareness and adoption and recommended that integrated reporting be imbibed into the reporting framework in Nigeria. In addition, relevant regulatory authorities should enforce mandatory integrated reporting on companies.