IMPACT OF INTEGRATED REPORTING ON BALANCED SCORECARD OF INSURANCE FIRMS IN NIGERIA

Despite the Nigerian insurance industry's potential, its fragmented and non-transparent corporate reporting practices hinder market penetration and growth by eroding stakeholder trust and obscuring the link between financial performance and value creation. This study examined the effect of integrated reporting on the market share of listed insurance firms in Nigeria. Specifically, the study investigated the effect of financial disclosure integration, ESG reporting quality, and stakeholder engagement on the market share of listed insurance firms in Nigeria. An ex-post facto research design was adopted for the study. Secondary data was used which was obtained from published and annual reports of listed manufacturing firms on the Nigerian Exchange Group. The population of the study consists of all twenty-eight (28) insurance firms listed on the Nigerian Exchange Group (NGX). A purposive sampling technique was used to select a sample of 22 insurance firms out of the listed twenty-eight (28) insurance firms. The study utilized panel data covering the 2015–2024 period to provide rigorous empirical evidence. The study employed the panel regression estimation technique after carrying out preliminary analyses such as descriptive statistics, correlation matrix, and normality test. The study also conducted diagnostic checks including tests for multicollinearity and heteroskedasticity to ensure the robustness of the results. The panel regression models were estimated using pooled OLS and robust regression techniques, and the results were subsequently used to test the formulated hypotheses. The results from study revealed that financial disclosure integration [coef. = –0.265, p = 0.000] has a significant negative effect on the market share of listed insurance firms in Nigeria. ESG reporting quality [coef. = 0.327, p = 0.076] has a weak but positive effect on the market share of listed insurance firms in Nigeria. Stakeholder engagement [coef. = –0.015, p = 0.774] has an insignificant negative effect on the market share of listed insurance firms in Nigeria. The study concluded that while ESG reporting shows a weak positive effect, the overall impact of integrated reporting on the market share of Nigerian insurance firms is not yet a source of competitive advantage, and some aspects, like financial disclosure integration, may even have a negative effect. It is therefore recommended that corporate managers and directors streamline financial disclosure practices to emphasize clarity, relevance, and strategic insights rather than volume. Policy makers and regulators can encourage this by mandating ESG-specific reporting sections in annual reports. Furthermore, regulators and policy makers can support this by providing clear standards for stakeholder inclusiveness in reporting.