Effect of Firm Size on the Relationship between Managerial Ownership and Integrated Reporting
Keywords:
Integrated Reporting, Managerial Ownership, Firm Size, Financial Statement, Regression
Abstract
The aim of this study is to evaluate the effect of managerial ownership on integrated reporting of non-financial services firms in Nigeria with firm size as the moderating variable. Secondary data covering a period of 10 years, 2012 to 2021 were extracted from a sample of 58 firms chosen from a population of 105 listed non-financial services firms that were listed on the Nigerian Exchange as of 31 December 2021. Multiple regression analysis was used to analyze the data and the findings reveal that managerial ownership has a negative and insignificant effect on integrated reporting of non-financial services firms in Nigeria while firm size has a significant and positive effect on integrated reporting of non-financial services firms in Nigeria. However, when the moderating variable was introduced, the results show a positive insignificant effect of firm size and managerial ownership on integrated reporting of non-financial services firms in Nigeria. Thus, this study concludes that managerial ownership in large non-financial organizations does not affect the disclosure of integrated reporting. Therefore, the study recommends the enforcement of integrated reporting on the management of large non-financial services firms in Nigeria by the board of non-financial services firms in Nigeria.
References
REFERENCE
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Adelowotan, M. O., & Udofia, I. E. (2021). Do corporate attributes drive integrated reporting
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Ahmed Haji, A., & Anifowose, M. (2016). The trend of integrated reporting practice in South
Africa: ceremonial or substantive? Sustainability Accounting, Management and Policy Journal, 7(2), 190-224.
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the United Kingdom towards an improved reporting agenda. Thesis Submitted To Kwansei Gakuin University
Akter, T., & Sekishita, A. H. (2019). Corporate level determinants of integrated reporting:
evidence from Japan. Journal of Advanced Industrial Science and Technology, 46, 109-128. https://www.kwanseiacjp/i_industrial/news/detail/news_20190327_021826.html
Alade, M. E., & Odugbemi, O. M. (2022). Corporate characteristics and implementation of
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Alnabsha, A. A., Ntim, C. G., & Elamer, A. A. (2018). Corporate boards, ownership structures
and corporate disclosures: evidence from a developing country. Journal of Applied Accounting Research, 19(1), 20-41. https://doi.org/10.1108/JAAR-012016-0001
Bakhtiar, S. M., & Hafizul, M. Z. (2019). Corporate governance and compliance of integrated
reporting: evidence from Malaysian listed companies. Jurnal Intelek, 14(2), 161-173.
Christian, Y. & Salim, D. S. (2022). Factors affecting forward-looking disclosure of integrated
reporting. Jurnal Multiparadigma Akuntansi, 4(2), 918-926.
Dhifi, K., & Zouari, G. (2022). Ownership structure, integrated reporting, and performance of
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Kansal, M., Joshi, M. & Batra, G.S. (2014). Determinants of corporate social responsibility
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Marita, Astuti, S., & Heriningsih, S. (2020). The effect of integrated reporting disclosure on firm
value: n empirical study on companies LQ45. International Journal of Progressive Sciences and Technologies (IJPSAT), 23(2), 489-497. http://ijpsat.ijsht-journals.org
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Being a thesis submitted to the university of Gent, for award of Master of Science in business engineering.
Mihalciuc, C. (2021). The contribution of integrated reporting in determining the performance
and value of sustainable organization. Journal of Social Sciences, 4(1), 29-40.
Nenhzih, N. (2019). The role of corporate governance to integrated reporting (survey on
Indonesia’s state- owned enterprises/SOEs). Saudi Journal of Economics and Finance, 3(8), 314-322. http://saudijournals.com/sjef/
Onyabe, M. J., Tijjani, B., & Yahaya, O. A. (2016). CEO and integrated reporting: evidence
from African listed communication services companies. Afro-Asian Journal of Finance and Accounting, 6(1), 86-98.
Otusanya, J. O., & Lauwo, S. (2010). The role of auditors in the Nigerian banking crisis.
Accountancy Business and the Public Interest, 9(1), 159-204.
Ovute, F. E., Eyisi, A. S., & Amorji, N. (2014). Problems and prospect of adopting international
financial reporting standards in Nigerian corporate organisation: A study of First bank of Nigeria Plc, Enugu. Developing Country Studies 4(6), 1-5.
Oyong, O. J., Aguolu, O., Bahakonfe, U. U., & Ohanya, I.E. (2022). Effect of integrated
reporting on financial performance of quoted finance companies in Nigeria. Journal of Natural Volatiles & Essential Oils, 9(2), 1-13.
Raimo, N., Vitolla, F., Marrone, A., & Rubino, M. (2020). The role of ownership structure in
integrated reporting policies. Business Strategy Environment, 1(13), 1-13. https://doi.org/10.1002/bse.2498
Rely, G. (2022). The effect of firm size and leverage on profit management with ownership
strucutre as moderating. International Journal of Economics, Social Science Entrepreneurship, and Technology, 1(2), 108-134.
Saleh, S. M., & Yenti, E. (2022). Influence of managerial ownership, leverage, profitability on
corporate social responsibility disclosure. Jurnal Imara, 6(1), 73-82.
Udofia, I. E., Adeyemi, S. B., & Ogunleye, O. J. (2021). Corporate governance and integrated
reporting of: evidence from selected listed companies in Nigeria. International Journal of Contemporary Accounting Issues, 10(2), 23-48.
Ulupui, I. G. K. A., Murdayanti, Y., Yusuf, M., Pahala, I., & Zakaria, A. (2020). Integrated
reporting disclosure and its implications on investor reactions. Journal of Asian Finance, Economics and Business, 7(12), 433-444.
Zouari, G., & Dhifi, K. (2022). The impact of ownership structure on integrated reporting in
European firms. Corporate Communications: An International Journal, 27(3), 527-542
https://doi.org/10.1108/CCIJ-052021-0057
Adegbie, F. F. A., Rufus, I., & Isiaka, B. (2019). Evaluation of integrated reporting and the value
of listed manufacturing firms in Nigeria. European Journal of Accounting, Auditing, and Finance Research, 7(7), 31-59. www.eajournals.org
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), 1-8. https://doi.oorg/10.4102/jef.v14i1.673
Agustia, D., Dianawati, W., & Dwi-Indah, R. A. (2018). Managerial ownership, corporate social
responsibility disclosure, and corporate performance. Management of Sustainable Development Sibiu, 10(2), 67-71.
Ahmed Haji, A., & Anifowose, M. (2016). The trend of integrated reporting practice in South
Africa: ceremonial or substantive? Sustainability Accounting, Management and Policy Journal, 7(2), 190-224.
Akhater, T. (2019). Contents and determinants of integrated reporting: evidence from Japan and
the United Kingdom towards an improved reporting agenda. Thesis Submitted To Kwansei Gakuin University
Akter, T., & Sekishita, A. H. (2019). Corporate level determinants of integrated reporting:
evidence from Japan. Journal of Advanced Industrial Science and Technology, 46, 109-128. https://www.kwanseiacjp/i_industrial/news/detail/news_20190327_021826.html
Alade, M. E., & Odugbemi, O. M. (2022). Corporate characteristics and implementation of
integrated reporting framework of listed oil and gas firms in Nigeria. International Review of Business and Economics, 6(1), 91-102. https://digitalcommons.du.edu/irbe/vol6/iss1/23
Alnabsha, A. A., Ntim, C. G., & Elamer, A. A. (2018). Corporate boards, ownership structures
and corporate disclosures: evidence from a developing country. Journal of Applied Accounting Research, 19(1), 20-41. https://doi.org/10.1108/JAAR-012016-0001
Bakhtiar, S. M., & Hafizul, M. Z. (2019). Corporate governance and compliance of integrated
reporting: evidence from Malaysian listed companies. Jurnal Intelek, 14(2), 161-173.
Christian, Y. & Salim, D. S. (2022). Factors affecting forward-looking disclosure of integrated
reporting. Jurnal Multiparadigma Akuntansi, 4(2), 918-926.
Dhifi, K., & Zouari, G. (2022). Ownership structure, integrated reporting, and performance of
European companies. Available at: https://ssrn.com/abstract=3981934
Eccles, R. & Krzus, M. (2010). Integrated reporting for a sustainable strategy. Financial
Executive, 26(2), 29-32.
Hadro, M., Fijałkowska, J., Bryl, L., Brescia, V., & Secinaro, S. (2022). What does ownership
structure tell us about integrated reporting of Polish listed companies. Proceedings of the 18th European Conference on Management Leadership and Governance, 544-552.
Hoque, M. E. (2017). Why company should adopt integrated reporting. International Journal of
Economics and Financial Issues, 7(1), 241-248. www.econjournals.com
IIRC. (2013). The International
International Federation of Accountants. (2016). A profession relevant to accountants in
business. Retrieved from https://www.ifac.org/ system/files/publications/files/PAIB-Committee-Meeting-Reportupdated-PDF.pdf
International Federation of Accountants. (2017). 2017 IFAC Annual Review. Retrieved from
https://www.ifac.org/system/files/publications/files/ 40-Years-of-Excellence-IFAC-annual-review-2017.pdf
Iredele, O. O. (2019). Examining the association between quality of integrated reports and
corporate characteristics. Heliyon, 5, 1-8.
Kansal, M., Joshi, M. & Batra, G.S. (2014). Determinants of corporate social responsibility
disclosures: Evidence from India. Advances in Accounting 30(1), 217–229. https://doi.org/10.1016/j.adiac.2014.03.009
Khan, A., Muttakin, M. B., & Siddiqui, J. (2013). Corporate governance and corporate social
responsibility disclosure: evidence from emerging economy. Journal Business Ethics, 114(2), 207-223.
KPMG. (2017). Survey of integrated reports in Japan 2016. Retrieved from
https://assets.kpmg.com/content/dam/kpmg/xx/pdf/2017/06/ survey-of-integrated-reports-in-japan-2016.pdf
Kurniawan, P. S. & Wahyuni, M. A. (2018). Factors affecting company’s capability in
performing integrated reporting: an empirical evidence from Indonesia. Jurnal Akuntansi dan Pendidikan, 7(2), 141-155.
Marita, Astuti, S., & Heriningsih, S. (2020). The effect of integrated reporting disclosure on firm
value: n empirical study on companies LQ45. International Journal of Progressive Sciences and Technologies (IJPSAT), 23(2), 489-497. http://ijpsat.ijsht-journals.org
Meuleman, M. (2018). The determinants of integrated reporting in Europe: an empirical study
Being a thesis submitted to the university of Gent, for award of Master of Science in business engineering.
Mihalciuc, C. (2021). The contribution of integrated reporting in determining the performance
and value of sustainable organization. Journal of Social Sciences, 4(1), 29-40.
Nenhzih, N. (2019). The role of corporate governance to integrated reporting (survey on
Indonesia’s state- owned enterprises/SOEs). Saudi Journal of Economics and Finance, 3(8), 314-322. http://saudijournals.com/sjef/
Onyabe, M. J., Tijjani, B., & Yahaya, O. A. (2016). CEO and integrated reporting: evidence
from African listed communication services companies. Afro-Asian Journal of Finance and Accounting, 6(1), 86-98.
Otusanya, J. O., & Lauwo, S. (2010). The role of auditors in the Nigerian banking crisis.
Accountancy Business and the Public Interest, 9(1), 159-204.
Ovute, F. E., Eyisi, A. S., & Amorji, N. (2014). Problems and prospect of adopting international
financial reporting standards in Nigerian corporate organisation: A study of First bank of Nigeria Plc, Enugu. Developing Country Studies 4(6), 1-5.
Oyong, O. J., Aguolu, O., Bahakonfe, U. U., & Ohanya, I.E. (2022). Effect of integrated
reporting on financial performance of quoted finance companies in Nigeria. Journal of Natural Volatiles & Essential Oils, 9(2), 1-13.
Raimo, N., Vitolla, F., Marrone, A., & Rubino, M. (2020). The role of ownership structure in
integrated reporting policies. Business Strategy Environment, 1(13), 1-13. https://doi.org/10.1002/bse.2498
Rely, G. (2022). The effect of firm size and leverage on profit management with ownership
strucutre as moderating. International Journal of Economics, Social Science Entrepreneurship, and Technology, 1(2), 108-134.
Saleh, S. M., & Yenti, E. (2022). Influence of managerial ownership, leverage, profitability on
corporate social responsibility disclosure. Jurnal Imara, 6(1), 73-82.
Udofia, I. E., Adeyemi, S. B., & Ogunleye, O. J. (2021). Corporate governance and integrated
reporting of: evidence from selected listed companies in Nigeria. International Journal of Contemporary Accounting Issues, 10(2), 23-48.
Ulupui, I. G. K. A., Murdayanti, Y., Yusuf, M., Pahala, I., & Zakaria, A. (2020). Integrated
reporting disclosure and its implications on investor reactions. Journal of Asian Finance, Economics and Business, 7(12), 433-444.
Zouari, G., & Dhifi, K. (2022). The impact of ownership structure on integrated reporting in
European firms. Corporate Communications: An International Journal, 27(3), 527-542
https://doi.org/10.1108/CCIJ-052021-0057
Published
2023-05-10
How to Cite
Abdulsalam Abdulfatah, L., Yahya, A. O., Agbi, S. E., & Tauhid, S. (2023). Effect of Firm Size on the Relationship between Managerial Ownership and Integrated Reporting. Global Journal of Accounting, 8(2), 43-54. Retrieved from http://gja.unilag.edu.ng/article/view/1708
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