IIARD International Institute of Academic Research and Development

Journal of Accounting and Financial Management (JAFM )

E-ISSN 2504-8856
P-ISSN 2695-2211
VOL. 10 NO. 3 2024
DOI: https://doi.org/10.56201/jafm.v10.no3.2024.pg14.34

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Financial Transparency and the Performance of Listed Manufacturing Firms in Nigeria

David, Theophilus Ukachi, Eyisi, Adanma Sabina and Okoro, Chinonso Churchill

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Abstract

The study examined the effect of financial transparency on the performance of listed manufacturing firms in Nigeria. To achieve the objective of the study, descriptive research design was adopted. The data were collected through secondary source from annual report and accounts of the selected manufacturing firms in Nigeria the population of the study is made up of 60 listed manufacturing firms while the sample size is 12 selected manufacturing firms in Nigeria using judgmental sampling. The data collected were analyzed using panel data based multiple regression analysis. The result revealed that that Therefore the study concludes that financial transparency has the tendency of affecting the financial performance of listed manufacturing firms in Nigeria. Based on this conclusion, the study recommends that It is prudent for listed manufacturing companies to disclose as much information as possible and also ensure that the information disclosed are transparent so as to minimize the level of information asymmetry and consequently stimulate financial performance. Manufacturing companies can also take the control of financial performance of the company through using high proficiency, experienced and independent managers with the necessary legal power as a potentially powerful mechanism and to be a cause of improvement in their accountability of the company.

keywords:

Financial transparency, board size, board independence, ownership structure and return on asset.

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