Determinants of Financial Reporting Quality in Quoted Manufacturing Firms: Nigerian Evidence
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2020-12
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Vysoké učení technické v Brně, Fakulta podnikatelská
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Purpose of the article: The study is undertaken to establish whether there is a relationship between financial reporting quality and the firm size, board independence, board size, institutional ownership, and growth opportunity in manufacturing firms quoted on the Nigerian Security Exchange. Methodology/methods: The research employs ex-post facto design; the population of the study is made up of fifty-four (54) manufacturing firms quoted on the Nigerian Stock Exchange (NSE); the judgmental sampling technique was utilized to select forty eighty (48) manufacturing firms as the study sample, while the Jarque Bera normality test, correlation and ordinary least squares (OLS) were used in the data analysis. Scientific aim: To ascertain the determinants of financial reporting quality in quoted manufacturing firms listed on the Nigeria Stock Exchange. Findings: The study revealed a significant positive relationship between the board size and firm financial reporting quality. Equally, the study further revealed that the firm size, board independence, institutional ownership and growth opportunity as financial reporting quality indicators have no significant effect on financial reporting quality. Conclusions: The study concludes that the board size is positively associated with firm financial reporting quality and that large boards are associated with better firm financial reporting quality, possibly through closely monitored management and robust decision-making. The implication is that larger boards can increase the quality of collective control and decision-making by utilizing the diversities of knowledge and expertise in the board, hence increasing financial reporting quality.
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Trendy ekonomiky a managementu. 2020, XIV, č. 36, s. 59-72. ISSN 1802-8527.
https://trends.fbm.vutbr.cz/index.php/trends/article/view/trends.2020.36.59
https://trends.fbm.vutbr.cz/index.php/trends/article/view/trends.2020.36.59
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en
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© Vysoké učení technické v Brně, Fakulta podnikatelská