Value Relevance of Integrated Reporting and Protection of Financial Capital Providers in Nigerian Deposit Money Banks

Abstract

Investor protection has suffered some setback lately; however, corporate reporting and recently integrated reporting (IR) is expected to provide a solution. Thus, this study became imperative to examine the effect of value relevance of IR on the protection of financial capital providers (shareholder and creditor) in Nigeria with a focus on Deposit Money Banks (DMBs). This study adopted an ex-post facto research design. The population was 24 DMBs under CBN supervision as of 31 December 2020. A sample of 13 DMBs was selected based on their listing status on the Nigerian Exchange (NGX) for the period 2005–2020. The study used inferential (correlation and regression) statistics to analyze the data. The study found that value relevance of IR had a significant effect on shareholder protection in pre-and post-IR Framework eras (Adj.R2 = 0.395, DID = 0.856, F(3, 204) = 27.43, p < 0.05), but had no significant effect on creditor protection (Adj.R2 = 0.003, DID = 0.139, F(3, 204) = 1.72, p > 0.05). The study concluded that the value relevance of IR affected shareholder protection in Nigerian DMBs but had no effect on creditor protection. It was recommended that regulators and corporate leaders should pay more attention to creditor protection.