Integrated Reporting and the Financial Performance of Listed Hydrocarbon Companies in Nigeria
Integrated reporting is speedily gaining global acceptance and its effect on financial performance has been given credibility. Therefore, this study explored the relationship between integrated reporting and financial performance. The descriptive research design was employed and the population consists of 10 listed hydrocarbon companies listed in the Nigerian Stock Exchange. From the population, a sample of 125 respondents was selected using stratified sampling method. The structured questionnaires with close-ended questions were used in collecting the primary data, while the Pearson Product Moment Correlation and the Simple Regression were used in the analysis of data. The findings revealed a significant relationship between the three dimensions of integrated reporting (adoption of integrated reporting, stakeholder engagement/disclosure practices, and corporate governance structure) and return on assets at a probability of 0.000 across board. The result further showed that adoption of integrated reporting, stakeholder engagement/disclosure practices; and corporate governance structure have very strong and positive relationship with return on assets at 0.929, 0.882, and 0.972 respectively. The study recommended that the adoption of integrated reporting should be made mandatory for all listed hydrocarbon companies; that companies should enhance their stakeholder engagement and disclosure practices; and listed hydrocarbon companies should strengthen their corporate governance structures. The research therefore concluded that there is a significant relationship between integrated reporting and financial performance and that the relationship is positive and very strong.