Determinants of Financial Reporting Quality among the Selected Listed Non-Financial Firms in Nigeria

Lawal Quadri Adebayo

Financial Reporting Quality, Cashflow Accrual Ratio, Corporate Governance.

The studydetermined the factors influencing financial reporting quality of quoted non-financial firms between 2004 and 2021.

The study employed secondary data.  The population of this study was 176 quoted non-financial firms listed on the Nigeria Stock Exchange. Fifty firms were purposively selected based on the availability of complete financial information for the sampled period. Data on cashflow accrual ratio, statements of financial position accrual ratio as proxies of financial reporting quality, firms’ size, auditors’ type, board size, leverage, audit committee size, age and firms’ liquidity were sourced from the audited annual financial report of the firms and factbook of Nigeria Stock Exchange. Data collected were analysed using percentages fixed effect model, random effect model and pooled OLS method.

The results revealed that both fundamental variables of financial statements and corporate governance variables are poor determinantsof financial reporting quality of quoted non-financial firms in Nigeria.

The study concludes that fundamental and corporate governance variables have little effect on financial reporting quality.

https://doi.org/10.31871/WJRR.14.6.12