Effect of Segment Reporting Practice on Investors Decision Making: A Comparative Analysis of Nigeria and South Africa

Omobolanle Abike Ajibola, Niyi Solomon AWOTOMILUSI (Ph.D) and Oluwapomile Joseph Obamoyegun
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Omobolanle Abike Ajibola: Department of Accounting, Afe Babalola University, Ado-Ekiti, Ekiti State, Nigeria
Niyi Solomon AWOTOMILUSI (Ph.D): Department of Accounting, Afe Babalola University, Ado-Ekiti, Ekiti State, Nigeria
Oluwapomile Joseph Obamoyegun: Department of Accounting, Afe Babalola University, Ado-Ekiti, Ekiti State, Nigeria

International Journal of Research and Innovation in Social Science, 2024, vol. 8, issue 4, 1258-1278

Abstract: Aim: Segment disclosure is expected to present essential information to meet the increased need of demand for published corporate disclosure of firms by stakeholders worldwide. This study examined the effect of Segment Reporting Practises on Investors’ Decision Making: A Comparative analysis of Nigeria and South Africa. Methodology: The research design was ex post facto. As of the end of 2023, the study’s population included 66 firms from the Johannesburg Stock Exchange and 46 multinational corporations listed on the Nigeria Exchange Group.15 businesses from each of the two stock exchanges were chosen using the purposive sampling method. Data were obtained from the audited annual reports of the companies from the period 2015 to 2022 and analyzed using Panel regression analysis. Results: Findings revealed that segment reporting practices have an insignificant effect on investors’ decision-making of multinational firms in Nigeria while on the decision-making of investors for multinational companies in South Africa, segment reporting practice can be argued to have a considerable impact.it can be said that segment reporting practice has a significant effect on investors’ decision-making of multinational firms in South Africa. Conclusion: This comprehensive panel regression analysis delved into the intricate relationship between segment reporting practice, leverage, firm size, and investors’ decision-making for multinational organisations in both Nigeria and South Africa. Recommendation: The findings offer nuanced insights into how these factors contribute to shaping investment decisions, as measured by share prices, in the respective countries. While the results vary between the two nations, they collectively underline the complexity of factors influencing investors’ choices and highlight the need for a tailored approach to decision-making frameworks.

Date: 2024
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