Integrated Reporting and Firm Value

Evidence from Listed Consumer Goods Firms in Nigeria

Abstract

Purpose: This study investigates the effect of integrated reporting on the firm value of listed consumer goods firms in Nigeria. It seeks to determine how financial and non-financial capital disclosures contribute to value creation and investor confidence.

Methods: A correlational research design was employed, using data from 15 listed consumer goods firms over 10 years (2014–2023). Firm value was measured using Tobin’s Q and market prices. Panel multiple regression analysis was applied, with firm size controlled to isolate the effect of integrated reporting practices.

Results: The findings indicate that integrated reporting has a significant positive effect on firm value. Specifically, disclosures related to financial capital, manufacturing capital, and social and relational capital were positively linked to firm value. However, reporting on human and intellectual capital showed no significant effects, contradicting theoretical expectations.

Implications: The results highlight the value-creating potential of comprehensive disclosure practices that integrate both financial and non-financial resources. Regulators such as the International Accounting Standards Board, the Financial Reporting Council of Nigeria, and the Securities and Exchange Commission should strengthen guidance on non-financial capital reporting. Additionally, training and capacity-building for listed firms will enhance the adoption of integrated reporting and align with global best practices.

Originality: This study contributes to the literature by providing empirical evidence on the role of integrated reporting in enhancing firm value within the Nigerian consumer goods sector, emphasizing the varying effects of different capitals.

Limitations: The study is limited to consumer goods firms listed on the Nigerian Exchange and covers 10 years. Future research could expand to other sectors, use longer timeframes, or adopt qualitative methods to yield more profound insights into integrated reporting practices.