Nexus between investor returns of Nigerian deposit money banks and integrated reporting with the moderating role of profit after tax
-
Author(s)Adegbola Olubukola OtekunrinLink to ORCID Index: https://orcid.org/0000-0001-8971-6985
,
Babatunde Ayodeji OwolabiLink to ORCID Index: https://orcid.org/0000-0002-8275-7431
,
Oluwasikemi Janet OwolabiLink to ORCID Index: https://orcid.org/0000-0001-7283-7481
,
Yinka Lydia EmmanuelLink to ORCID Index: https://orcid.org/0000-0002-8877-1082
-
DOIhttp://dx.doi.org/10.21511/bbs.19(3).2024.01
-
Article InfoVolume 19 2024, Issue #3, pp. 1-8
- 264 Views
-
63 Downloads
This work is licensed under a
Creative Commons Attribution 4.0 International License
Integrating reporting strives to address issues with corporate reporting procedures and hold businesses responsible for their local surroundings, as well as additional stakeholders impacted by their operations in producing returns for investors. This study employed Nigerian deposit money banks to examine whether investor returns with profit after tax and integrated reporting are statistically and significantly related. Ex post facto research methodology was applied. Purposive sampling was used to sample ten Nigerian deposit money banks. Data were taken from the annual reports of the chosen banks. The international integrated reporting framework of 2021 checklist was utilized to extract integrated reporting data using the unweighted content analysis method. The integrated reporting disclosure index was used as a proxy for integrated reporting. Market price per share, dividend per share, and price-earnings ratio were used as proxies for investor returns. Profit after tax was used as a moderating variable. The results indicate that with the moderating variable, which is Profit after tax, integrated reporting and price-earnings ratio are related to coefficients of 9.9585. Integrated reporting and dividend per share are related to coefficients of 3.151612. Integrated reporting and market price per share are related to coefficients of 36.7535. Dividend per share and integrated reporting disclosure are significantly related to p-values of 0.001. Market price per share and integrated reporting disclosure are significantly related to p-values of 0.002. This study concluded that integrated reporting and investor returns are statistically and significantly related to the moderating role of Profit after tax of Nigerian deposit money banks.
Acknowledgment
The involvement of those who helped make this study successful is acknowledged below. We appreciate your involvement.
- Keywords
-
JEL Classification (Paper profile tab)G35, G30, M41
-
References41
-
Tables2
-
Figures0
-
- Table 1. Description of variables
- Table 2. Regression analysis
-
- Adegboyegun, A. E., Alade, E., Ben-Caleb, A. O., Ademola, D. F., & Oladipo, O. A. (2020). Integrated reporting and corporate performance in Nigeria: Evidence from the banking industry. Cogent Business & Management, 7(1), 1-12.
- Adelowotan, M. O., & Udofia, I. E. (2021). Do corporate attributes drive integrated reporting amongst listed companies in Nigeria? Journal of Economic and Financial Sciences, 14(1), 673-683.
- Agarwal, N. (2021). Integrated reporting and the informativeness of annual reports: Does textual coherence matter? China Accounting and Finance Review, 23(1), 93-116.
- Appiagyei, K., Djajadikerta, H., & Xiang, E. (2016). Integrated reporting and firm performance: A research framework. In ECU Business Doctoral and Emerging Scholars Colloquium 2016 (p. 123). School of Business and Law.
- Barth, M., Cahan, S. F., Chen, L., & Venter, E. R. (2017). The economic consequences associated with integrated report quality: Capital market and real effects. Accounting, Organizations and Society, 62, 43-64.
- Bijlmakers, S. (2018). Corporate Social Responsibility, Human Rights and the Law (1st ed.). London: Routledge.
- Bochenek, M. (2020) Analysis of the integrated reporting use in EU countries. Problems and Perspectives in Management, 18(3), 106-117.
- Cohen, J. R., Holder-Webb, L. L., Nath, L., & Wood, D. (2012). Corporate reporting of nonfinancial leading indicators of economic performance and sustainability. Accounting Horizons, 26(1), 65-90.
- Cooray, T., Senaratne, S., Gunarathne, A.D.N., Herath, R., & Samudrage, D. (2020). Does integrated reporting enhance the value relevance of information? Evidence from Sri Lanka. Sustainability, 12(19), 81-89.
- Cosma, S., Soana, M. G., & Venturelli, A. (2018). Does the market reward integrated report quality? African Journal of Business Management, 12(4), 78-91.
- Dam, L., & Scholtens, B. (2015). Toward a theory of responsible investing: On the economic foundations of corporate social responsibility. Resource and Energy Economics, 41, 103-121.
- Dewi, S., & Dian, A. (2020). Does voluntary integrated reporting reduce information asymmetry? Evidence from Europe and Asia. Heliyon, 6(12), 1-11.
- Dey, P. K. (2020). Value relevance of integrated reporting: a study of the Bangladesh banking sector. International Journal of Disclosure and Governance, 17(4), 195-207.
- Dhaliwal, D., Li, O. Z., Tsang, A., & Yang, Y. G. (2014). Corporate social responsibility disclosure and the cost of equity capital: The roles of stakeholder orientation and financial transparency. Journal of Accounting and Public Policy, 33(4), 328-355.
- Eccles, R., & Krzus, M. (2010). One Report: Integrated Report for a Sustainable Strategy. New York: Wiley.
- Ehichioya, O. G. (2019). Integrated Reporting and Firms’ Performance in Nigeria (Doctoral Thesis). Nnamdi Azikiwe University.
- El Deeb, M. S. (2019). The Impact of Integrated Reporting on Firm Value and Performance: Evidence from Egypt. Journal of Accounting Research, 3(2), 2682-3144.
- Eluyela, D. F., Okere, W., Otekunrin, A. O., Okoye, J. N., Festus, A., & Ajetunmobi, O. (2020). Institutional Investors Ownership and Financial Performance: Examining the Nexus in Nigerian Deposit Money Banks. Research in World Economy, 11(6), 177-184.
- Hayyin, A. M., & Iman, H. (2021). The relationship between corporate governance and integrated reporting. Journal of Accounting and Investment, 22(1), 51-79.
- Huang, X., & Watson, L. (2015). Corporate social responsibility research in accounting. Journal of Accounting Literature, 34(1), 1-16.
- Huda, M., Maseleno, A., Atmotiyoso, P., Siregar, M., Ahmad, R., Jasmi, K. A., & Muhamad, N. H. N. (2018). Big Data Emerging Technology: Insights into Innovative Environment for Online Learning Resources. International Journal of Emerging Technologies in Learning, 13(1), 23-36.
- Huei, L. Y., & Kee, L. P. (2021). Integrated reporting and firm performance in Malaysia: Moderating effects of board gender diversity and family firms. Studies of Applied Economics, 39(4), 20-29.
- International Integrated Reporting Council (IIRC). (2013). Integrated reporting framework.
- Islam, M. S. (2020). Investigating the relationship between integrated reporting and firm performance in a voluntary disclosure regime: insights from Bangladesh. Asian Journal of Accounting Research, 6(2), 228-245.
- Islam, M. S. (2021). Investigating the relationship between integrated reporting and firm performance in a voluntary disclosure regime: Insights from Bangladesh. Asian Journal of Accounting Research, 6(2), 228-245.
- Jensen, M. C., & Meckling, W. H. (1976). Theory of the firm: Managerial behavior, agency costs, and ownership structure. Journal of Financial Economics, 3(4), 305-360.
- Lee, K. W., & Yeo, G. H. (2016). The association between integrated reporting and firm valuation. Review of Quantitative Finance and Accounting, 47(4), 1221-1250.
- Li, Y., Gong, M., Zhang, X.-Y., & Koh, L. (2018). The impact of environmental, social, and governance disclosure on firm value: The role of CEO power. The British Accounting Review, 50(1), 60-75.
- Mans-Kemp, N., & Van der Lugt, C.T. (2020). Linking integrated reporting quality with sustainability performance and financial performance in South Africa. South African Journal of Economic and Management Sciences, 23(1), a3572.
- Moloi, T., & Iredele, O. (2020). Firm value and Integrated reporting quality of South African listed firms. Academy of Strategic Management Journal, 19(1), 1-12.
- Nurkumalasari, I. S., Restuningdiah, N., & Sidharta, E. A. (2019). Integrated reporting disclosure and its impact on firm value: evidence in Asia. International Journal of Business, Economics, and Law, 18(5), 99-108.
- Nwanji, T. I., Howell, K. E., Faye, S., Otekunrin, A.O., Eluyela, D. F., Lawal, A. I., & Eze, S. C. (2020). Impact of foreign direct investment on the financial performance of listed deposit banks in Nigeria. International Journal of Financial Research, 11(2), 323-347.
- Otekunrin, A. O., Iyoha, F. O., Uwuigbe, U., & Uwuigbe, O. R. (2017). Adoption of International Financial Reporting Standard, capital structure and profitability of selected quoted firms in Nigeria. Proceedings of the 29th International Business Information Management Association Conference - Education Excellence and Innovation Management through Vision 2020: From Regional Development Sustainability to Global Economic Growth (pp. 3788-3796).
- Owolabi, S. A., Olaoye, S. A., & Hassan, A. K. (2020). A survey of stakeholders’ perception of the decision relevance of integrated reporting in Nigerian Listed firms. Accounting and Taxation Review, 4(3), 102-119.
- Pavlopoulos, A., Magnis, C., & George, E. I. (2019). Integrated reporting: An accounting disclosure tool for high quality financial reporting. Research in International Business and Finance, 49, 13-40.
- Salvi, A., Vitolla, F., Anastasia, G., Nicola, R., & Rubino, M. (2020). Intellectual capital disclosure in integrated reports: The effect on firm value. Technological Forecasting and Social Change, 16(1), 1-10.
- Sayar, A. R. Z., & Topdemir, M. C. (2018). Does mandatory integrated reporting affect stock prices? An empirical study on the Johannesburg Stock Exchange. Journal of Research in Business, 3(1), 133-149.
- Soumillion, V. (2018). The value relevance of integrated reporting in South Africa (Master’s Thesis). Universiteit Gent.
- Taiwo, O. J., Owolabi, B. A., Adedokun, Y., & Ogundajo, G. (2022). Sustainability reporting and market value growth of quoted companies in Nigeria. Journal of Financial Reporting and Accounting, 20(3-4), 542-557.
- Vitolla, F., Raimo, N., Michele, R., & Garzoni, A. (2020). The impact of national culture on integrated reporting quality. A stakeholder theory approach. Business Strategy and the Environment, 28(8), 1558-1571.
- Wahl, A., Charifzadeh, M., & Diefenbach, F. (2020). Voluntary Adopters of Integrated Reporting – Evidence on Forecast Accuracy and Firm Value. Business Strategy and the Environment, 29(6), 542-2556.
-
Integrated reporting and financial performance of South African listed banks
Reon Matemane ,
Rozane Wentzel
doi: http://dx.doi.org/10.21511/bbs.14(2).2019.11
Banks and Bank Systems Volume 14, 2019 Issue #2 pp. 128-139 Views: 2800 Downloads: 553 TO CITE АНОТАЦІЯThe recent development of integrated reporting intends to address the limitations associated with corporate reporting practices. This paper aims to examine whether a statistically significant relationship exists between integrated reporting quality and financial performance. Secondary data was used, namely the integrated reports and annual financial statements of South African banks listed on the Johannesburg Stock Exchange (JSE) for 2010–2014. For the period 2005–2009, only the financial statements were used, since integrated reporting was not yet mandatory. The research design was longitudinal and it combined qualitative and quantitative methods. Descriptive statistics and Feasible Generalized Least Square (FGLS) were used to explore the relationships between financial performance and integrated reporting quality. The results indicate that there is a positive relationship between integrated reporting quality (IRQ) and earnings per share (EPS). However, there is no significant relationship between IRQ and Tobin’s q (Q-Ratio), IRQ and return on equity (ROE), IRQ and return on assets (ROA) as well as IRQ and economic value added (EVA). Moreover, there are no significant differences on the financial performance of the listed banks before and after the introduction of integrated reporting.
-
From the corporate social responsibility reporting to the integrated reporting: the case of Sabaf S.p.a
Problems and Perspectives in Management Volume 15, 2017 Issue #1 (cont.) pp. 150-157 Views: 2543 Downloads: 1044 TO CITE АНОТАЦІЯIn December 2013, the International Integrated Reporting Council (IIRC) published the International Integrated Reporting Framework.
The aim of the Framework is to provide the guiding principles and the content elements of an integrated report. The integrated report constitutes an evolutionary step in the corporate’s financial and non-financial communication, moving from the social responsibility reporting to the integrated reporting.
This practice is at the beginning in Europe and especially in Italy, where only a few listed companies have decided to face the multitude of challenges the integrated report implies.
Considering the relevance of such a new form of communication, the paper examines the main steps carried out by an Italian listed company moving towards the integrated report. The research has been conducted by adopting a qualitative case study approach, by focusing on Sabaf S.p.a, an Italian listed medium sized company belonging to the Star Segment. This company has been selected, because it was one of the first adopters of the integrated report among the Italian listed companies.
The study is built on data gathered through sites visits, structured interviews and company materials.
The paper examines Sabaf’s transition from the corporate social responsibility report to the integrated report, aiming at answering the following research question:
Why has Sabaf moved to integrated reporting? Which are Sabaf’s main steps towars the integrated report? How is the Sabaf’s integrated reporting process going?
The findings should be of interest to a number of parties including standard setters, firms, financial advisors, auditors and users of non-financial statements. -
Determinants of financing decision: empirical evidence on manufacturing firms in Indonesia
Sutomo Sutomo , Sugeng Wahyudi ,
Irene Rini Demi Pangestuti ,
Harjum Muharam
doi: http://dx.doi.org/10.21511/imfi.16(2).2019.14
Investment Management and Financial Innovations Volume 16, 2019 Issue #2 pp. 159-170 Views: 2387 Downloads: 333 TO CITE АНОТАЦІЯThis study aims to contribute to the emergence of the literature focusing on exploring the factors influencing the financing decision, as well as examining the relationship between the firm size, profitability and firm growth towards the corporate debt. Questions such as how relevant firm size, profitability and firm growth to debt are, quantitatively, had not been fully answered in the business literature. The purpose of this study is to fill this large gap by examining the role of the firm size, profitability, investment and firm growth for the corporate debt. This study tries to examine the determinants of debt in the financial literature which include size, growth, business risk, and profitability in accordance with the capital structure theory, in manufacturing firms in Indonesia. The sample contained financial data from 150 firms for the period 2012–2017. The results showed that the manufacturing firms in Indonesia had high debt levels, especially the size, profitability, firm growth and profitability had proven to be the debt determinants, which also confirmed the Pecking Order Theory. This study also found that the management preference of manufacturing firms in Indonesia for risk was the risk-seeker or risk-neutral ones. This finding implies that the choice of funding sources originating from debt still provided greater returns compared to the capital cost needed due to business uncertainties.
