Effect of Integrated Reporting on Financial Reporting Quality of Listed Industrial Firms in Nigeria

This study investigates the effect of integrated reporting on financial reporting quality of listed industrial firms in Nigeria. Specifically, the study examines how governance disclosure, business model disclosure, and performance disclosure influence financial reporting quality as measured by IFRS disclosure compliance index. Utilizing an ex-post facto design with a balanced panel dataset of 130 firm-year observations from 13 listed industrial firms over a ten-year period (2015-2024), the study employs a Random Effects regression model to analyze the data, with firm size as the control variable. The findings reveal that governance disclosure and performance disclosure have positive and statistically significant effects on financial reporting quality, while business model disclosure exhibits a positive but statistically insignificant influence. Firm size demonstrates a significant positive effect on financial reporting quality. The study, therefore, concludes that in the Nigerian industrial sector context, financial reporting quality is primarily driven by the extent of governance and performance disclosures within integrated reports. Firms that provide comprehensive governance information and link their financial and non-financial performance to value creation processes tend to achieve higher financial reporting quality. Based on these conclusions, it is recommended that regulatory bodies encourage the adoption of integrated reporting practices, while industrial firms should prioritize governance and performance disclosures to enhance the quality of their financial reports. This research provides critical, evidence-based guidance for understanding integrated reporting determinants of financial reporting quality in Nigeria's industrial sector.