Determinants of Financial Reporting Quality in Quoted Manufacturing Firms: Nigerian Evidence

Loading...
Thumbnail Image
Date
2020-12
ORCID
Advisor
Referee
Mark
Journal Title
Journal ISSN
Volume Title
Publisher
Vysoké učení technické v Brně, Fakulta podnikatelská
Altmetrics
Abstract
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.
Description
Citation
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
Document type
Peer-reviewed
Document version
Published version
Date of access to the full text
Language of document
en
Study field
Comittee
Date of acceptance
Defence
Result of defence
Document licence
© Vysoké učení technické v Brně, Fakulta podnikatelská
Citace PRO