Firm Characteristics and Performance Disclosure in Annual Reports of Nigerian Banks using the Balanced Scorecard
Firm Characteristics and Performance Disclosure in Annual Reports of Nigerian Banks using the Balanced Scorecard

Summary/Abstract: This study investigated the influence of four firm characteristics (size, organisational structure, age and systemic importance) on extent of performance disclosures by Nigerian banks using the balanced scorecard (BSC) model. The population of the study comprised of publicly-listed banks in Nigeria, in operation from 2012 to 2014. Using a self-designed disclosure checklist, the annual reports of a sample of 15 publicly quoted banks in Nigeria were content-analysed for performance disclosure for the period 2012-2014.Descriptive statistics, t-test and Analysis of Variance (ANOVA) were applied in data analysis, deducing inference at 5% significance level. It was observed that firms did not significantly differ in the extent of performance disclosure in each of the four BSC perspectives on one hand, and the overall BSC measure on the other hand, on the account of the four firm attributes examined. Considering that annual reports are mainstream amongst the media used to communicate firm performance to the public, it was recommended that preparers of such documents should consider disclosing financial and non-financial performance; this will not only provide a comprehensive basis to judge organisational performance, but will also assist in diffusing the clout created by asymmetry of information between preparers and users of performance reports.

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