Firm characteristics and financial reporting quality of listed non-financial firms in Nigeria

Abstract

This study examined the interface between corporate attributes and financial reporting quality of listed non-financial entities in Nigeria for the period 2011-2020. The entire 112 listed nonfinancial companies in Nigeria formed the population of the study, and 40 companies emerged as a sample of the study. The study adopted the correlational research design using secondary data extracted from the annual report and accounts of listed non-financial in Nigeria and panel multiple regression analysis was used as a technique for data analysis. The findings showed that company size, board size, and profitability have a significant positive impact except company size which is negatively determining the FRQ of non-financial entities in Nigeria.
Leverage and growth showed a nonsignificant impact on the financial reporting quality of listed non-financial firms in Nigeria. The need for organizations to maintain a good reputation cannot be overemphasized; as such no compromise should be entertained in ensuring and protecting the quality of financial reports. It is recommended that non-financial entities in Nigeria should invest in sales maximization strategies to increase sales revenue.