Effects of the Adoption of Integrated Reporting on the Information Needs of Capital Providers: Evidence from Nigeria
Abel Aigbodion Asein, Dr. Festus Folajimi Adegbie, Ishola Rufus Akintoye

Abstract
Corporate entities use variants of capital to create value. Studies have shown that the resultant financial statements satisfy only the information needs of financial capital providers, thereby creating the misleading impression that organisations can operate without other capitals. This lapse impairs the decision usefulness of financial statements and creates information expectation gap as stakeholders now desire financial and non-financial information to make investment decisions. This study sought to determine whether integrated reporting practice will satisfy the information needs of stakeholders of Nigerian listed companies. This study used survey research design which involved the administration of questionnaire to 400 respondents selected from a population of 82,353 professional accountants in Nigeria in 2018. The sampling techniques were purposive and convenience. The questionnaire’s construct validity, content reliability and internal consistency tests were done with Partial Least Square-Structural Equation modelling and it produced Average Variance Extracted (AVE)>0.5 and Composite Reliability (CR)>0.7; and Cronbach Alpha values ranging from 0.716 to 0.951 indicating reliability and validity of the questionnaire. Out of the 400 copies of questionnaire administered, 378 were retrieved indicating a response rate of 95%. The data obtained were analysed using descriptive and inferential statistics. From the findings, the study determined the nature of the relationships which exist between the 8 content elements and each of the reclassified 4 variants of capital. It also revealed the degree of influence which a content element (the independent variable) can have on a variant of capital (dependent variable). These findings were validated by the computed results of the various t-tests, adjusted R2 and F-statistics at the significance level of p< 0.05. Using the Stakeholder theory, this study determined that corporate reports should contain information needs of all capital providers.Conclusively, the study established that integrated reporting practices will satisfy the information needs of all capital providers and recommended the mandatory adoption of integrated reporting framework by the Financial Reporting Council of Nigeria as desired by stakeholders of Nigeria quoted companies.

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