Impact of Integrated Reporting Disclosures on The Financial Performance of Listed Insurance Companies in Nigeria.

This study empirically investigated the association between integrated reporting disclosure and corporate financial performance of listed insurance companies in Nigeria over the period 2012 to 2022. The study adopted an ex post facto and correlational research design. The study focused on ten insurance companies listed on the Nigerian Exchange Group, with data obtained from their published annual reports and audited financial statements. Integrated reporting disclosure was measured using a disclosure index based on the major elements of the International Integrated Reporting Framework, while corporate financial performance was measured using return on assets (ROA), return on equity (ROE), and earnings per share (EPS). Descriptive statistics, correlation analysis and multiple regression analysis were employed to analyse the data and test the study's hypotheses. The findings revealed mixed relationships between the components of integrated reporting disclosure and corporate financial performance. Overall, the integrated reporting disclosure variables did not have a statistically significant relationship with ROA at the 5% level. The relationship with ROE was marginally significant at the 10% level, while the model for EPS was statistically significant at the 5% level. At the individual disclosure-element level, governance disclosure had a significant negative relationship with ROA, ROE and EPS, whereas performance disclosure had a significant positive relationship with all three measures of financial performance. Strategy and resource allocation also had a significant positive relationship with EPS, while outlook and basis of preparation and presentation had significant negative relationships with EPS. The study therefore concludes that integrated reporting disclosure is associated with corporate financial performance, although the nature and strength of the relationship vary according to the financial performance measure and the specific elements disclosed. The study recommends, among others, that managers of listed insurance companies should strengthen the quality and consistency of integrated reporting practices, particularly Disclosures relating to performance, strategy and resource allocation, governance, and the basis of preparation. It also recommends that the Financial Reporting Council of Nigeria (FRCN) should provide clearer guidance and progressively strengthen the corporate reporting framework to encourage meaningful integration of financial and non-financial information.

Integrated Reporting, Financial Performance, Listed Companies, ROA, ROE, EPS, Nigeria Exchange Group, Integrated Reporting Disclose

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