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. 10 2024
DOI: 10.56201/jafm.v10.no10.2024.pg116.131

---

Firm Attributes and Financial Reporting Quality of Listed Non- Financial Companies in Nigeria

Ukavwe Holiness, Professor Okolie Augustine Oke

---

Abstract

This study examined the effect of firm attributes on financial reporting quality o f liste d non- financial firms in Nigeria. To achieve the overall objective of this study, four (4) specific objectives were raised alongside with four (4) hypotheses. The data used in this study are secondary and were collated from the financial statements of a sample of 74 nonfinancial listed firms, drawn from a population of 140 non-financial firms listed on the Nigerian Exchange Group. The data used in this study covered a period of 10 years and spanned from 2012 to 2021. Financial reporting quality, accrual quality was used as a proxy. The independent variable which is firm characteristics was measured using firm size, economic value added, firm profitability (measured with return on asset), and revenue growth. Both descriptive and inferential statistical tools were used to analyze the data collected. Finding from the data analyses and hypotheses testing revealed that firm attributes measures (firm size, economic value added, firm profitability and revenue growth) has significantly affected financial reporting quality of listed firms in Nigeria with each having a p-value of 0.000 and 0.008. In line with the findings, the study recommends among others that Managements of firms should make sure they seek to maintain a positive EVA by maintaining a good rate of return on investors’ funds, as this will improve the quality of its financial, and as this study observes that revenue growth significantly affect the quality of the firms’ financial report, good revenue growth strategies should be put in place as it will boost positively the confidence of investors who look for revenue growth trends in financial reports to gauge a company's growth over specific time periods.

keywords:

Firm attribute; Non-financial companies; Financial reporting quality; Firm

---

References:

Adane, W. A. (2020). Financial Performance Analysis of Private Commercial Banks of Ethiopia,
Research Journal of Finance and Accounting (IISTE), 11(13), 2222-1697 doi:
10.7176/RJFA/11-13-01.
Aigienohuwa, O. O., & Ezejiofor, R. A. (2021). Leverage and timeliness of financial reports in
Nigerian quoted companies. International Journal of Advanced Academic Research.
7(10), ISSN: 2488-9849 (October, 2021) | www.ijaar.org.
Egbunike, C. F., & Okerekeoti, C.U. (2018) Macroeconomic factors, firm characteristics and
financial performance of selected quoted manufacturing firms in Nigeria. Asian Journal
of Accounting Research 3(2), 142-168.
Enakirerhi, L. I., Ibanichuka, E. A. L. & C Ofurum, C. O. (2020). Firms’ profitability and financial
reporting quality: pre and post IFRS adoption in Nigeria. International Journal of
Research and Innovation in Social Science (IJRISS) 5(1), 249
Hassan, S. U., & Bello, A. (2013). Firm characteristics and financial reporting quality of listed
manufacturing firms in Nigeria. International Journal of Accounting, Banking and
Management, 1(6), 47–63.
IASB. (2008). Exposure Draft on an improved Conceptual Frame work for Financial Reporting:
The Objective of Financial Reporting and Qualitative Characteristics of Decision-useful
Financial Reporting Information. London: IASB.
Ishak, R., Amran, N. A., & Abdul Manaf, K. B. (2018). Firm Characteristics and Financial
Reporting Quality: The Moderating Role of Malaysian Corporate Governance Index. The
Journal of Social Sciences Research, Special Issue 6, 924-932. https://doi.org/1032861/jssr.spi6.924.932.
Jeroh, E. (2020). Firms’ attributes, corporate social responsibility disclosure and the financial
performance of listed companies in Nigeria. Asian Economic and Financial Review, 10(6),
727-743.
Kenny, A. S., & Luqman, S. O. (2019). Firm characteristics and financial reporting quality:
Evidence from non-financial firms in Nigeria. International Journal of Economics,
Management and Accounting, 27(2), 445-472.
Olowokure, O., Tanko, M. & Nyor, T. (2015). Firm Structural Characteristics and Financial
Reporting Quality of Listed Deposit Money Banks in Nigeria. International Business
Research. 9(106). DOI: 10.5539/ibr.v9n1p106.
Olowookere, J. K., Ajiboye, O. O., & Ibrahim, J. (2021). Firm Characteristics and Financial
Reporting Quality of Listed Consumable Goods Companies in Nigeria. Journal of
Contemporary Issues in Accounting, 1(1), 41–55. DOI:
https://journals.unizik.edu.ng/jocia/article/view/891.
Onuorah, A. C. & Imene, O. F. (2016). Corporate governance and financial reporting quality in
selected Nigerian company. International Journal of Management Science and Business
Administration, 2(3), 7-16
Osuji, C.C., & Okwuagwu, P.N. (2022). Firms’ Characteristics and Quality of Financial Reports
of Firms in Nigeria Industrial Goods Sector, International Journal of Management and
Commerce Innovations, 10(1), 283-292. DOI: https://doi.org/10.5281/zenodo.6646687.
Oyedokun, G., & Olatunji L., & Musa, F. (2020). Effect of Audit Committee Characteristics on
Financial Reporting Quality of Quoted Consumer Goods Companies in Nigeria,
University of Benin Journal of Accounting. 4(1). 12-27.
Rathnayake, S., Rajapakse, R., & Lasantha, R. (2021). The Impact of Financial Reporting Quality
on Firm Performance. Journal of Business and Technology. DOI: 10.4038/jbt.v5i0.53.
Saliu, P., & Adetoso, A. (2018). Relevance of Financial Reporting On Profitability of Quoted
Companies in Nigeria. International Journal of Economics, Commerce, and Management,
6(3).

DOWNLOAD PDF

---

Back