CORPORATE GOVERNANCE PRACTICES AND FINANCIAL REPORTING QUALITY OF QUOTED FIRMS IN NIGERIA
CORPORATE GOVERNANCE PRACTICES AND FINANCIAL REPORTING QUALITY OF QUOTED FIRMS IN NIGERIA

Summary/Abstract: This study looks at the effect which corporate governance may have on financial reporting quality using data from Nigerian publicly traded companies. The financial records of the selected companies were relied on in extracting panel data for ten (10) firms over a ten-year period (2011–2020). Board size, the expertise of board members, presence of women on companies’ boards, board independence, and board shareholdings are all factors considered as measures of corporate governance. The OLS regression estimation technique was used in conjunction with relevant diagnostic tests to conduct the analysis. We found that, at a 5% significance level, the sizes of corporate boards, their level of independence and expertise, and the percentage of board shareholdings all have significant impact on financial reporting quality. Conversely, women presence in companies’ Boards did not show significant effect on financial reporting quality. The study recommends, among other things, that regulatory authorities keep a close eye on directors' shareholdings over time, as this research has shown that firms with large directors' shareholdings are most likely to have the inducement to engage in earnings management, which has a multiplier effect on the quality of financial reporting.

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