Integrated reporting and investor returns of deposit money banks listed on the Nigerian exchange

Abstract

The introduction of integrated reporting aims to solve the drawbacks of corporate reporting practices and make companies accountable to their immediate environment, including other stakeholders affected by company operations in generating returns to investors. This study investigated whether there is a statistically significant relationship between integrated reporting and investor returns. Ex post facto research design was used. Ten (10) Deposit Money Banks were sampled using a purposive sampling technique. Data were extracted from the annual reports of the selected banks, and the unweighted method of content analysis was used to extract integrated reporting data with the checklist from the International Integrated Reporting Framework (IIRF, 2021). The integrated reporting disclosure index was used as a proxy for integrated reporting. Proxies used for investor returns are the price-earnings ratio, dividend per share, and market price per share. The results indicate that the integrated reporting disclosure index is positively related with the price-earnings ratio, dividend per share and market price per share, with coefficients of 56.3403, 1.5240 and 16.6122, respectively, for the three (3) models. This implies that an increase in practicing integrated reporting will increase market price per share, dividend per share and price-earnings ratio. Likewise, the integrated reporting disclosure index has a significant effect on dividend per share and price-earnings ratio with p-values 0.000 and 0.001, respectively. However, the disclosure index has an insignificant effect on market price per share, with a p-value 0.184. This study concluded there is a statistically significant relationship between integrated reporting and investor returns.