Accounting Ethics and Quality of Financial Reporting in Nigeria O
Abstract
The dearth of some companies and increased levels of prominent frauds over the past two decades had raised the issue of ethics in the accounting profession. The study examines the effect of accounting ethics on financial reporting quality of companies in Abia State Nigeria. The study employs a quantitative research design. The study particularly used the survey design in collecting data from professional accountants on accounting ethics and quality of financial reporting. The population of the study consist of the 413 members of professional accounting bodies in Abia State. Using a convenient sampling technique, the 54 questionnaires returned are used as sample size for analysis. The type of questionnaire used contains structured questions and a rating scale of 5- point Likert and the data is analyzed using a multivariate regression. The study found that, integrity has a significant effect on value relevance of financial reports while objectivity has insignificant effects on value relevance of financial report. Further findings revealed that, objectivity has a significant effect on timeliness of financial reports while integrity has insignificant effects on timeliness of financial reports. In line with the findings, it is recommended that, regulators should mandate comprehensive ethics training for accounting professionals at all levels. Also, they should incorporate ethical considerations into accounting curricula to nurture a strong ethical foundation as well as require companies to provide enhanced disclosures on their ethical practices and policies, demonstrating their commitment to maintaining high ethical standards which is capable of spurring value relevance of companies’ financial report
