Effect of Integrated Reporting on Financial Performance of Industrial Goods Firms Listed on the Ngx

Integrated Reporting (IR), as explained by the International Integrated Reporting Council (IIRC, 2013), evolved as a strategic corporate reporting framework aimed at communicating how organizations create value over time through the integration of financial and non-financial information. Despite regulatory support in Nigeria—particularly through the Nigerian Exchange's (NGX) Sustainability Disclosure Guidelines (2019)—empirical evidence on IR's effectiveness in enhancing financial performance, especially within the industrial goods sector, remained limited. This study investigated the effect of eight core IR components—Organizational Overview (OV), Governance (GOV), Business Model (BM), Risks and Opportunities (RO), Strategy and Resource Allocation (SRA), Performance (PERF), Outlook (OUT), and Basis of Preparation and Presentation (BPP)—on the Earnings Per Share (EPS) of industrial goods firms listed on the NGX. The paper adopted a quantitative ex-post facto research design, and secondary data were collected from seven listed firms between 2019 and 2023. Disclosure scores for IR components were measured using a normalized scale based on IIRC (2013) criteria, while EPS figures were extracted from audited financial statements. Analytical techniques included descriptive statistics, correlation analysis, multiple regression, and Structural Equation Modelling (SEM) to ensure robustness. The results showed that none of the IR components significantly affected EPS. Although Business Model and Strategy and Resource Allocation showed weak positive associations with EPS, the relationships were not significant (p > 0.05). The findings suggested a continued disconnect between integrated reporting disclosures and investor valuation in Nigeria's industrial goods sector. This was attributable to limited stakeholder exposures, choice for traditional financial indicators, and/or the non-enforceable nature of IR adoption. The study added to the literature by providing real insights into the practical effectiveness of IR in an emerging market and a specific sector, like the Nigerian Financial sector. The study also recommended agile regulatory enforcement, stakeholder education, and tailored disclosure strategies, all aimed at improving IR's relevance and usefulness in financial decision-making in Nigeria.