Integrated Reporting Quality and Cost of Equity Capital of Nigerian Listed Firms

This study examines the relationship between integrated reporting quality (IRQ) and the cost of equity capital (CoEC) among firms listed on the Nigerian Exchange Group (NGX) for the period 2010–2024. Drawing on a panel dataset of 151 listed firms, the study employs an ex-post facto research design and panel regression techniques, including pooled OLS, fixed effects (FE), and random effects (RE) models, with the Hausman specification test guiding model selection. The study incorporates seven control variables—firm size (FS), firm age (FA), board size (BS), board independence (BI), industry type (INDT), financial leverage (FL), and ownership structure (OS)—to isolate the independent effect of IRQ on CoEC. Findings reveal that IRQ exerts a significant negative effect on CoEC, suggesting that firms with higher-quality integrated reports attract equity capital at lower costs. These results are robust to alternative model specifications and post-estimation diagnostics. The evidence underscores the strategic and financial value of embracing the International Integrated Reporting Council (IIRC) framework in an emerging market context where information asymmetry is endemic. This study contributes to the nascent empirical literature on integrated reporting in sub-Saharan Africa, offering actionable insights for regulators, investors, and corporate managers in Nigeria and analogous developing economies.