Integrated Reporting Quality and Investment Efficiency of Listed Firms in Nigeria

This study examines the relationship between integrated reporting quality (IRQ) and investment efficiency (IE) among listed firms in Nigeria for the period 2010–2024. Drawing on agency theory, stakeholder theory, and the information asymmetry hypothesis, the study argues that higher quality integrated reporting mitigates information gaps between firms and their capital providers, thereby improving investment decision-making and reducing both under-investment and over-investment tendencies. Using an unbalanced panel dataset of 151 listed firms on the Nigerian Exchange Group (NGX) over 15 years (yielding 2,265 firm-year observations), and employing pooled ordinary least squares, fixed effects, random effects, and robust panel regression models, the study finds that IRQ exerts a statistically significant and positive effect on investment efficiency across all model specifications. The Hausman test confirms fixed effects as the preferred estimator. Diagnostic checks reveal the presence of heteroscedasticity and serial autocorrelation, which are addressed through the use of panel-corrected standard errors. Control variables including firm size, board independence, industry type, financial leverage, and ownership structure are found to be significant determinants of investment efficiency, while board size, firm age, and CEO tenure exhibit no robust association. These findings are consistent with voluntary disclosure theories and the growing emphasis on integrated thinking in corporate governance. The study contributes to the nascent empirical literature on integrated reporting in Sub-Saharan Africa and offers actionable policy implications for regulators, investors, and corporate managers in Nigeria and comparable frontier market economies.