IIARD International Institute of Academic Research and Development

IIARD International Journal of Economics and Business Management (IJEBM )

E-ISSN 2489-0065
P-ISSN 2695-186X
VOL. 10 NO. 7 2024
DOI: 10.56201/ijebm.v10.no7.2024.pg114.128

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Effect of CEO Attributes on the Quality of Financial Reporting of Nigerian Firms

UDEZO Nathan O. (PhD); Agubata N. S. (PhD) & IGBRU Oghenekaro (PhD)

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Abstract

Because of the enormous corporate challenges and failures, many questions as to who does the cap fit in putting the enterprises right arises to demand answers to, what characteristics of the CEO are suitable for driving the performance of the organizations with less or no misrepresentation in the financial statements. That calls for this study to investigate the effect of CEO attributes that promote fraud-less financial statement. The study was built on three specific objectives that included investigating the effect of CEO turnover, CEO nationality and CEO gender on quality of financial statement of firms in Nigeria. The three hypotheses that were tested were formulated in accordance with the objectives established. The study covered non-financial service firms for a period of ten years from 2012 to 2021 and adopted Ex-post facto research design. Secondary data were collected from the annual reports of the firms. Sample of 68 firms were drawn from the population of 106 firms listed under non-financial service firms, using a purposive sampling technique. The data generated were analysed with descriptive statistics, correlation and panel regression technique. The findings show that CEO gender has negative and significant effect on quality of financial statement, CEO turnover have inverse statistical significant effect on quality financial statement of non-financial firms at 1% level, while, CEO nationality have positive insignificant effect on quality financial statement of the sampled firms. The study recommended amongst others that shareholders should reduce the rate to which they relieve the CEO his duty as that has increased the degree of low quality financial reports of listed firms sampled.

keywords:

CEO Gender Diversity, CEO Turnover, CEO Nationality, Quality of Financial

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