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March 14, 20260 citationsOpen Access

Integrated Reporting Quality and Investment Efficiency of Listed Firms in Nigeria

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OYOnipe Adabenege Yahaya

Key Points

  • The study aims to explore how integrated reporting quality influences investment efficiency in listed firms in Nigeria.
  • Examined 151 listed firms on the Nigerian Exchange Group from 2010 to 2024.
  • Utilized an unbalanced panel dataset yielding 2,265 firm-year observations.
  • Employed pooled ordinary least squares and robust panel regression models for analysis.
  • Conducted diagnostic checks for heteroscedasticity and serial autocorrelation.
  • Integrated reporting quality has a statistically significant positive effect on investment efficiency.
  • Fixed effects model confirmed as the preferred estimator through Hausman test.
  • Control variables like firm size and board independence significantly influence investment efficiency.
  • No strong association found for board size, firm age, and CEO tenure.

Abstract

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.

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Cite This Study

Onipe Adabenege Yahaya (2026) studied this question.

synapsesocial.com/papers/69b4fc44b39f7826a300d01ehttps://doi.org/10.5281/zenodo.18978603
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Also Consider

Synapse has enriched 5 closely related papers on similar clinical questions. Consider them for comparative context:

  1. 1Integrated Reporting Quality and Cost of Equity Capital of Nigerian Listed Firms2026
  2. 2Effect of Integrated Reporting on Financial Reporting Quality of Listed Industrial Firms in Nigeria2026
  3. 3Effect of Integrated Reporting on Financial Reporting Quality of Listed Industrial Firms in Nigeria2026
  4. 4The Effect of Integrated Reporting Adoption on Firm Value: Evidence from the Nigerian Exchange Group2026
  5. 5The Effect of Sustainability Reporting Quality Mediated by Information Transparency on Investment Efficiency in Nigeria2026