Effect of Integrated Financial Reporting on Investment Decision-Making Among Listed Firms in Nigeria: Evidence from the Nigerian Stock Exchange

The growing complexity of corporate disclosures has renewed interest in integrated financial reporting as a tool for enhancing investment decision-making, particularly within emerging economies. Despite global advocacy for integrated reporting frameworks, empirical evidence linking such disclosures to investor behavior in Nigeria remains sparse. This study examined the effect of integrated financial reporting on investment decision-making among listed firms on the Nigerian Exchange Group, with specific reference to firms within the South-East geopolitical zone. Anchored on the signaling theory, the study adopted a survey research design. The population comprised 214 accounting officers, finance managers, and institutional investors affiliated with ten selected listed firms. Using the Taro Yamane formula, a sample size of 139 respondents was drawn through stratified random sampling. A structured questionnaire served as the primary instrument for data collection, and its reliability was confirmed via Cronbach's alpha coefficient of 0.84. Data collected were analyzed using multiple regression analysis. Findings revealed that the quality and comprehensiveness of integrated reports positively and significantly influenced investor confidence and capital allocation decisions. The study concluded that firms adopting integrated reporting frameworks attract better investment flows due to enhanced transparency. It was recommended that the Financial Reporting Council of Nigeria should enforce mandatory integrated reporting standards for all listed entities, particularly those with significant public interest implications.

Keywords: Integrated financial reporting, investment decision-making, signaling theory, Nigerian Exchange Group, corporate disclosure