MODERATING EFFECT OF INSTITUTIONAL OWNERSHIP ON THE RELATIONSHIP BETWEEN BOARD CHARACTERITICS AND INTEGRATED REPORTING OF LISTED FINANCIAL FIRMS IN NIGERIA

Abstract

The transition from traditional financial reporting to integrated reporting remains inconsistent among listed financial firms in Nigeria, largely due to conflicting evidence on whether board characteristics drive transparency and whether institutional ownership moderates these relationships. This study examines the moderating effect of institutional ownership on the relationship between board characteristics (independence, gender diversity, and diligence) and integrated reporting of listed financial firms in Nigeria over the period 2014–2024. An ex post facto research design was adopted, with a population of 42 listed financial firms on the Nigerian Exchange Group. A filtering sampling technique yielded a final sample of 35 firms, providing 385 firm‑year observations. Secondary data were collected from annual reports, sustainability reports, and corporate governance disclosures. Integrated reporting was measured using a disclosure index based on the International Integrated Reporting Council’s eight content elements. Panel regression analysis with fixed effects was employed. The findings reveal that board independence (β = 0.425, p = 0.035) and board gender diversity (β = 0.604, p < 0.001) have positive and significant direct effects on integrated reporting, while board diligence is insignificant. Institutional ownership directly and positively influences IR (β = 0.318, p = 0.003). Regarding moderation, only the interaction between board gender diversity and institutional ownership is positive and significant (β = 0.541, p < 0.001); the moderating effects on board independence and diligence are insignificant. The study concludes that board independence and gender diversity enhance integrated reporting, and institutional ownership amplifies only the effect of gender diversity. Recommendations include increasing the proportion of female directors, strengthening independent director mandates, shifting focus from meeting frequency to meeting quality, and encouraging active institutional investment to leverage the synergy with gender‑diverse boards for improved integrated reporting in Nigeria’s financial sector.