Firm Age, Board Size and Integrated Reporting Quality: Panel Evidence from Nigerian Financial Service Firms

Abstract

Even though many financial service firms in emerging markets have adopted integrated reporting, the quality of these reports remains inconsistent. In Nigeria, limited empirical evidence exists on how corporate governance structures influence integrated reporting quality and whether firm characteristics shape this relationship. This paper, thus, discusses the question of whether the firm age would have a difference in the relationship between the board size and quality of the integrated reporting of listed financial service companies in Nigeria. The research design is ex-post facto and the study uses panel data of 24 listed firms between the year 2014 and 2024. Data were analysed using multiple regression with panel-corrected standard errors to address potential heteroscedasticity and cross-sectional dependence. Integrated reporting quality was measured using a disclosure index constructed from the eight content elements of the International Integrated Reporting Council (IIRC) framework. The findings indicate that board size and firm age each have a negative and statistically significant effect on integrated reporting quality. Nonetheless, the relationship between the board size and the firm age is positive and significant which implies that the impact of board size on the reporting quality varies with the maturity of the firm. This implies that the older companies might be in a better position to use the larger boards to enhance the disclosure practices because the firm has gained experience in governance and learnt through experience. The research adds to the governance and integrated reporting literature by showing that the success of the board structures in the creation of reporting outcomes depends on the firm specifics. The results also indicate that to enhance the integrated reporting practices, regulators and corporate boards should not concentrate on board size alone, but also enhance effectiveness of their governance measures.