Consolidated Financial Reporting Disclosure and Firms’ Value of Worldwide Companies in Nigeria
Keywords:Financial Reporting; Financial Disclosure; Financial Statement; Consolidated Financial Reporting Disclosure; Firm’s value
This study aimed at examining the effect of consolidated financial reporting disclosure and firms’ value of worldwide companies in Nigeria. The researcher tends to achieve these objectives by investigating the relationship between debt policy and firms’ value of listed non-financial worldwide companies in Nigeria; the second objective of the research is to examine the relationship between corporate size and firms’ value of listed non-financial worldwide companies in Nigeria. The study adopted an ex-post-facto research design and secondary data was gathered to analyze the relationship between the variables. The population of the study consisted of one hundred and thirteen (113) of non-financial worldwide companies listed on the Nigeria Exchange Group as at 5th march, 2021. Purposive sampling technique was employed to select 76 non-financial listed multinational firms in Nigeria. Data for the study were gathered from annual reports of selected firms for the period of 11 years (2010-2020) and analyzed using Generalized Method of Moments (GMM) estimator. The GMM estimator result revealed that corporate size has positive and significant effect on firms value of listed non-financial worldwide companies in Nigeria with coefficient of 0.555 which is significant at 5% (p=0.00013), while debt ratio has negative and significant effect on firms value of listed non-financial multinational companies in Nigeria with a coefficient of -0.00867 which is significant at 5% (p=0.002). The study, therefore, concluded that consolidated financial reporting disclosure have significant effect on firms value of worldwide companies in Nigeria .The study recommends that managers of worldwide companies in Nigeria should begin voluntarily adopting consolidated financial reporting methods and also corporate annual reports in Nigeria should contain non-financial information about the company's long-term prospects as a way to educate stakeholders about the company's long-term viability as a going concern.
Adegbie, F. F., Akintoye, I. R. & Isiaka, B. (2019). Evaluation of integrated reporting and the value of listed manufacturing firms in Nigeria, European Journal of Accounting, Auditing & Finance Research, 7(7), 31-59.
Alişkan, S., A. (2021). Integrated reporting: An initial analysis of early reporters. Paper presented at the Massey University Accounting Research Seminar, Auckland.
Aliskan, A. (2021). Who is the beneficiary of slack on corporate financial performance and corporate philanthropy? evidence from South Korea. Sustainability, 11(1), 252. doi:10.3390/su11010252.
Armbester, K., Clay, T. & Roberts, L. (2021). ‘Integrated reporting: An irreversible tipping point’. accountancy SA, April: 29–31.
Ana, S. W. (2021). Integrated reporting. Concepts and cases that redefine corporate accountability.Berlin: Springer, 191–204.
Angelo, D. & Masulius, E. R. (2018). Firm's characteristics and integrated reporting: Evidence from Sri Lanka. Conference: 3rd Interdisciplinary Conference of Management Researchers At: Sabaragamuwa University of Sri Lanka
Atkins, J. F. & Maroun, W. (2020). ‘Integrated reporting in South Africa in 2012: Perspectives
Brown, J. & Dillard, J. (2020). ‘Integrated reporting: On the need for broadening out and opening up’. Accounting, Auditing & Accountability Journal, 27(7):1120–1156.
Bao.E., K. & Datta, B. (2020). An analysis of response rates and economic costs between mail and web-based surveys among practicing dentists: A randomised trial’. Journal of Community Health, 37:383–394.
Baiman, D. F. & Verrecchi., N. (2019). The international integrated reporting framework: Key issues and future research opportunities’. Journal of International Financial Management & Accounting, 25(1):90–119.
Baimukhamedova, M., Baimukhamedova, I., & Luchaninova, E. (2019). Analysing quantitative data.In Maree, K. (Ed.). First steps in research. Pretoria: Van Schaik, 99–117
Bijlmakers, L. (2018). The influence of integrated reporting on firm value [M.Sc. Thesis]. University of Amsterdam.
Claudia-Maia & Dragomori, R. Y. (2020). What is corporate sustainability and how do firms practice it? A management accounting practice. Journal of Management Accounting Research, 28(2), 1-11.
Cheng, M., & Green, A. D. (2019). ‘The international integrated reporting framework: Key issuesand future research opportunities’. Journal of International Financial Management & Accounting, 25(1):90–119.
Churet, E. U. & Eccles, P. A. (2019). Analysis of key factors affecting the reporting disclosure indexes of sustainability reporting in Indonesia. International Journal of Business, Economics and Law, 16(1), 15-25. ISSN 2289-1552.
De Klerk, M. & De Villiers, C. (2022). ‘The value relevance of corporate responsibility reporting: South African evidence’. Meditari Accounting Research, 20(1):21–38.
De Villiers, C., Rinaldi, L. & Unerman, J. (2014).‘Integrated reporting: Insights, gaps and an agenda for future research’ .Accounting, Auditing & Accountability Journal, 27(7):1042– 1067.
IIRC International Integrated Reporting Council. (2013). Consultation dft of the international Framework. [Online] Available at: http://integratedreporting.org/ wp Draft-of-the- International IRFramework. pdf. Accessed: 15 October 2015.
Iddirisi, U. D., Okpanachi, J., Nyor, T., & Muhammad, M. L (2020). Effect of financial reporting and firm value of informal sector in Nigeria. Ghana Journal of Management Sciences 1192), 320-348.
Pandey. C., A. (2019). ‘The value added statement: An appropriate instrument for integrated reporting’. Accounting, Auditing & Accountability Journal, 27(7):1190– 1216.
Lee and Yeo (2016). Research in practice: Applied methods for the social sciences. Cape Town:UCT Press.
Machael Spencer. (1973). Econometric analysis of panel data. New York;, Wiley
Macias & Farfan-Lievano, (2019). ‘Corporate social responsibility: Trade-off or synergy – Perceptions of executives of FTSE All-Share companies’. Sustainability, Accounting, Management and Policy Journal, 4(2):190–215.
Mazumder. C., & Hossain., N. (2021). Senior executives’ perspectives of integrated reporting regulatory regimes as a mechanism for advancing sustainability in South African listed companies’. Southern African Business Review, 18(3):143–172.
Nasil, A. (2020). Between cost and value: investigating the effects of sustainability reporting on a firm's performance. Journal of Applied Accounting Research, 481-496.
Nurkumalasari, R. (2019). The international integrated reporting council: A story of failure’.
Critical Perspectives on Accounting, 27:1–17.
Olusanjo, O. (2018). ‘The risk maturity of South African private and public sector organisations’.Southern African Journal of Accountability and Auditing Research, 24:45– 56.
Samuel-Oke, M. & Afolabi, L. (2011). Effect of firm characteristics on environmental reporting practices of listed manufacturing firms in Nigeria. Nigerian Journal of Management Sciences 6(1), 140-148.
Soumillon, M. (2019). “An analysis of response rates and economic costs between mail and web- based surveys among practicing dentists: A randomised trial’. Journal of Community Health, 37:383–394.
Stulv, J. (1990). Determinants of corporate social responsibility disclosure: an empirical study of Polish listed companies. Sustainability, 9(11), 1934. http://doi:10.3390/su9111934.
Suttipun, W. E. (2017). Corporate communication and impression management: New perspectiveswhy companies engage in social reporting’. Journal of Business Ethics, XXVII:55–68.
Spence, O., R. (2022). ‘Integrated reporting: On the need for broadening out and opening up’. Accounting, Auditing & Accountability Journal, 27(7):1120–1156.
Titman R. E & Wessel, (1988). Sustainability reporting in a global context: What are the characteristics of corporations that provide high quality sustainability reports an empirical analysis. International Business and Economic Research Journal 9(1), 19-30.
Unema, H. E. (2020). Company characteristics and environmental disclosure: An empirical investigation on companies listed on Borsa Istanbul 100 index. Muhasebeve Finansman Dergisi, 62.
How to Cite
Copyright (c) 2022 Augustine Osho, Gabriel Kehinde Agbede
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.