Imperative of Adopting Integrated Reporting by Quoted Companies in a Volatile Global Economy: Nigeria in Perspective

Abstract

Integrated reporting (IR) is an emerging field of corporate reporting devised for corporate entities to ensure sustainable value creation in the short, medium and long term. The major thrust of this paper therefore was to determine the extent of the adoption of integrated reporting principles and practices as contained in the framework by quoted firms in Nigeria. Due to paucity of data from reporting entities on the implementation of integrated reporting, a documentary combined with descriptive research approach was adopted. Sample size was determined using the purposive random sampling method, which led to the selection of one (1) critical company from each sector making a total of twelve (12) companies quoted in the Nigerian Stock Exchange. This study will provide a new and deep introspection for companies   intending preparing and presenting integrated reports and those already doing so. The result of the tested hypothesis shows a significant f-value of .65 (P-value = .089 > .05); thus leading to the acceptance of the null hypothesis. This indicates that there is no significant evidence of integrating reporting adoption and practice by quoted companies in Nigeria. This result is due possibly to the recency of integrated reporting disclosures and the lack of legislative framework to support it in Nigeria. Predicated on the result, it was recommended that companies quoted on the Nigerian Stock Exchange should be enlightened and motivated to adopt the integrated reporting principles and practices as this will promote the accountability and transparency framework of the firms. In addition, the full adoption of integrated reporting frameworks should be made one of the key requirements for companies to be listed on the Stock Exchange.