Consequences of Implementing Integrated Reporting in Nigeria Using A DOI Approach
Research efforts have supported the need for more accountability by organisations to stakeholders about their performance in reaching their long term vision through the use of integrated reporting. This study examined the consequences arising from IR implementation using diffusion of innovation theory approach. The study utilized primary data obtained from a survey of 485 users of corporate reports. The data gathered through a questionnaire was analysed using descriptive statistical tools. Purposive sampling technique was used in selecting the sample for the study. The findings showed that corporate governance, financial performance, corporate attributes and the influence of stakeholders in the external environment have significant influence in the diffusion of IR. These users perceived that the benefits of IR adoption have strong motivation for adoption but there are three major factors militating against this diffusion. These include increased monitoring from regulatory authorities; exposure of confidential information and high cost of implementation. It is recommended that regulators of corporate entities in Nigeria should consider phased implementation of IR across various economic sectors rather than mandatory adoption. Secondly, they should liaise with management of quoted companies before embarking on mandatory IR adoption, by providing needed technical and infrastructural support that would ease some of the challenges arising from IR adoption.
Bernardi, C. & Stark, A. W. (2018). Environmental, social and governance disclosure, integrated
reporting, and the accuracy of analyst forecasts. British Accounting Review, 50(1), 16–31. https://doi.org/10.1016/j.bar.2016.10.001
Companies and Allied Matters Act 1990, Laws of the Federal Republic of Nigeria 1990, Section 59
De Villiers, C., Hsiao, P.-C.K. & Maroun, W. (2017). Developing a conceptual model of influences
around integrated reporting, new insights, and directions for future research. Meditari Accountancy Research, 25(4), 450-460.
De Villiers, C. & Maroun, W. (2017). Introduction to sustainability accounting and integrated
reporting, In De Villiers, C & Maroun, W. (Eds., 1-13) Sustainability accounting and integrated reporting, Routledge: Abingdon, UK.
De Villiers, C., Rinaldi, L.,& Unerman, J. (2014). Integrated Reporting: Insights, gaps and an agenda
for future research. Accounting, Auditing and Accountability Journal, 1-47.
Doni, F., Gasperini, A., & Pavone, P. (2016). Early adopters of integrated reporting: The case of the
mining industry in South Africa. African Journal of Business Management, 10(9), 187-208, DOI: 10.5897/AJBM2016.8029
Dumay, J., Bernardi, C., Guthrie, J., & La Torre, M. (2017). Barriers to implementing the
International Integrated Reporting Framework: A contemporary academic perspective. Meditari Accountancy Research, MEDAR-05-2017-, 1-28
Eccles, R. G., Cheng, B., & Saltzman, D. (2010). The Landscape of Integrated Reporting reflections
and next steps. Massachusetts: Harvard Business School, Cambridge.
Eccles, R. G., & Krzus, M. P. (2010).One report: Integrated reporting for a sustainable strategy.
New Jersey:John Wiley & Sons.
Eccles, R.G., & Serafeim, G.(2014). Corporate and integrated reporting: A functional perspective.
Working Paper,14-094, Havard Business School
Eccles, R.G., & Serafeim, G. (2011). Accelerating the adoption of integrated reporting. CSR Index,
Frías-Aceituno, J.V., Rodríguez-Ariza, L. & García-Sánchez, I.M. (2013). Is integrated reporting determined by a country’s legal system? An exploratory study, Journal of Cleaner Production 44, 45-55.
Frias-Aceituno, J.V., Rodríguez-Ariza, L. and Garcia-Sánchez, I.M. (2014). Explanatory factors of
integrated sustainability and financial reporting, Business Strategy and the Environment, 23 (1), 56-72
Havlová, K.( 2015 ) What integrated reporting changed: The case study of early adopters. Procedia
Economics and Finance, 34, 231 – 237
IIRC (2011). Towards integrated reporting: Communicating value in the 21st Century London: International Integrated Reporting Council http://integratedreporting.org/resource/international-ir-framework/ Accessed on 8/3/18
IIRC (2013),The International IR Framework. http://integratedreporting.org/resource/international-ir-framework/ Accessed on 8th March 2018
Imeokparia, L. (2009). Human resource accounting and intellectual capital reporting in developing countries: An empirical study of Nigeria. Journal of Management and Enterpreneur, UNIPORT, 2(1), 138-146
Imeokparia, L. (2007). The extent of social and environmental reporting and disclosure by Nigerian organisations. International Journal of Development and Management Review, 2(1), 137-147
International Standards of Accounting and Reporting (ISAR) (2005). https://unctad.org/en/pages/
Kiliç, M., Kuzey, C. & Uyar, A. (2015). The impact of ownership and board structure on corporate
social responsibility (CSR) reporting in the Turkish banking industry, Corporate Governance: The International Journal of Business in Society, 15 (3,) 357-374
Kilic, M. & Kuzey, C. (2018). Determinants of forward-looking disclosures in integrated reporting,
Managerial Auditing Journal, doi.org/10.1108/MAJ-12-2016-1498
Lee, K.W., & Yeo, G.H. (2016). The association between integrated reporting and firm valuation.
Review of Quantitative Finance & Accounting , 47(4):1221–1250. DOI 10.1007/s11156-015-0536-y
Macias, H. A., & Farfan-Lievano, A. (2017). Integrated Reporting as a strategy for firm
growth: Multiple case study in Colombia, Meditari Accountancy Research, 25(4),605-628
McNally, M., Cerbone, D., & Maroun, W. (2017). Exploring the challenges of preparing an integrated report, Meditari Accountancy Research, 25(4),481-504, https://doi.org/10.1108/MEDAR-10-2016-0085
Okaro, D.C., & Okafor, G.O. (2016). Integrated Reporting in Nigeria: The present and future. (Section from book) Responsible Corporate Governance: Towards Sustainable and Effective Governance Structures , 247-263
Oprisor, T. (2015). Auditing integrated reports: Are there solutions to this puzzle? Procedia
Economics and Finance 25, 87 – 95. Doi: 10.1016/S2212-5671(15)00716-9.
Rivera-Arrubla, Y.A., Zorio-Grima, A. & García-Benau, M.A. (2017). Integrated reports: disclosure
level and explanatory factors , Social Responsibility Journal, 13(1),155 – 176.
Rogers, E.M. (2003), Diffusion of Innovations, 5th ed. NY Free Press, New York.
Robertson, F., & Samy, M. (2014 ). Factors affecting the diffusion of integrated reporting – a UK
FTSE 100 perspective. Sustainability Accounting, Management and Policy Journal, 6(2), 190-223
Udofia, I.E., Fagboro, G. D. & Adeyemi, S. B. (2020). The Integrated Reporting (IR) Framework
Implementation in Nigerian Listed Companies, Global journal of Accounting, 6(1), 1-11 http://gja.unilag.edu.ng/issue/view/98
Uyar, A. & Kılıç, M. (2012). Value relevance of voluntary disclosure: Evidence from Turkish firms,
Journal of Intellectual Capital, 13 (3), 363-376
van Zijl, W., Wöstmann, C., & Maroun, W. (2017). Strategy disclosures by listed financial services
companies: signalling theory, legitimacy theory and South African integrated reporting practices. South African Journal of Business Management, 48(3),73- 85
Zhou, S., Simnett, R. & Green,W. (2017)Does integrated reporting matter to the capital market?
ABACUS, 53 (1), 94-132. doi: 10.1111/abac.12104
Copyright (c) 2021 Michael O. Adelowotan, Udofia Ini E.
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
The author fully assumes the content originality and the holograph signature makes him responsible in case of trial.