WORLD JOURNAL OF FINANCE AND INVESTMENT RESEARCH (WJFIR )

E-ISSN 2550-7125
P-ISSN 2682-5902
VOL. 8 NO. 4 2024
DOI: 10.56201/wjfir.v8.no4.2024.pg89.104


Corporate Governance and Timeliness of Annual Reports of Companies in Nigeria

Tonye Ogiriki, Ph.D & Mr. Dennis F. Adire


Abstract


This study examines the influence of corporate governance variables on the timeliness of annual reports among industrial goods companies in Nigeria. The study adopted the ex-post facto research design, and data was obtained from the annual report of ten (10) selected industrial goods firms listed in the Nigerian Exchange Group (NGX) with data spanning from 2018-2023, with the annual reporting lag (ARPLAG) as the dependent variable. The independent variables are board independence (BIND), audit committee size (AUDSZ), and audit meeting frequency (AUDMT). Using panel least squares regression, the results show that board independence has a negative and insignificant effect on annual reporting lag. Audit size also has a negative and insignificant effect on annual reporting lag, suggesting that the size of the audit committee does not significantly impact report timeliness. However, frequency of audit meetings has a positive but insignificant effect on annual reporting lag. The study concludes that corporate governance has an insignificant effect on the timeliness of annual reports of companies in Nigeria. This indicates that other factors may influence the timeliness of financial reporting. Recommendations include enhancing board independence, optimizing audit committee size, improving audit meeting effectiveness, and reviewing internal processes to identify and eliminate delays in report preparation and publication.


keywords:

Corporate governance, audit committee, annual reporting lag, board


References:


Adewale, A. A., & Salawu, R. O. (2023). Ownership structure and the timeliness of financial
reporting: Evidence from Nigeria. Corporate Governance: The International Journal
of Business in Society, 23(1), 78-92.
Adeyemi, K. S., & Fagbemi, T. O. (2023). The impact of corporate governance on financial
reporting in Nigeria. Journal of Financial Regulation and Compliance, 31(2), 45-62.
Afolabi, J. O., & Olayinka, A. F. (2023). Corporate governance challenges in family-owned
businesses in Nigeria. African Journal of Business Ethics, 18(4), 151-166.
Aguilera, R. V., Judge, W. Q., & Terjesen, S. A. (2023). Board composition and financial
reporting timeliness: A comparative study. International Journal of Corporate
Governance, 15(3), 103-120.
Ahmed, K., & Che-Ahmad, A. (2021). The determinants of annual reporting lag: A
comparative study. Journal of International Accounting, Auditing and Taxation, 40(1),
101-115.
Ashton, R., Wang, Y., & Singh, S. (2022). The implications of timely financial reporting.
Journal of Financial Reporting, 39(1), 45-63.
Brown, T., & Mason, D. (2021). The impact of audit committee meeting frequency on financial
reporting quality. Journal of Accounting Research, 29(3), 345-360.
Bushman, R. M., & Smith, A. J. (2001). Financial accounting information and corporate
governance. Journal of Accounting and Economics, 32(1-3), 237-333.
Duru, A., & Tsang, A. (2022). Corporate governance and financial reporting lag. Accounting
and Finance Journal, 62(2), 223-240.
Eisenhardt, K. M. (1989). Agency theory: An assessment and review. Academy of Management
Review, 14(1), 57-74.
Fama, E. F., & Jensen, M. C. (1983). Separation of ownership and control. Journal of Law and
Economics, 26(2), 301-325.
Financial Reporting Council (FRC) of Nigeria. (2022). Annual Report on Corporate
Governance. FRC Publications.
Garcia, M., & Kang, S. (2022). Annual reporting lag and its implications for financial
transparency. Journal of Financial Reporting and Accounting, 20(3), 300-318.
Garcia, R., & Simpson, L. (2021). Board independence and its effect on corporate governance.
Corporate Governance: An International Review, 28(4), 567-582.
Jensen, M. C., & Meckling, W. H. (1976). Theory of the firm: Managerial behavior, agency
costs and ownership structure. Journal of Financial Economics, 3(4), 305-360.
Johnson, A., Lee, K., & Chen, Y. (2022). Audit committee activity and financial reporting
quality. International Journal of Accounting, 57(2), 178-192.
Johnson, T., & Lee, M. (2022). Governance reforms and their impact on financial misconduct.
Journal of Corporate Finance, 30(2), 210-225.
Jones, D., & Zhang, P. (2023). Regulatory impacts on the timeliness of annual reports.
International Journal of Accounting, 58(2), 210-225.
Lee, H., Park, J., & Kim, S. (2022). The role of audit committee size in corporate governance.
Journal of Financial Regulation and Compliance, 30(1), 125-140.
Li, X., & Shroff, N. (2021). Corporate governance and the timeliness of financial reporting.
Review of Accounting Studies, 26(3), 589-617.
Miller, P., Roberts, J., & Wilson, D. (2022). The influence of independent directors on
corporate governance practices. Business and Society Review, 37(2), 250-266.
Nguyen, T., & Taylor, M. (2023). Examining the optimal size of audit committees for effective
governance. Auditing: A Journal of Practice & Theory, 42(1), 88-104.
OECD. (2023). Principles of Corporate Governance. OECD Publishing.
Oke, A. O., & Aluko, O. J. (2023). Regulatory reforms and corporate governance practices in
Nigeria. Journal of Contemporary African Studies, 41(2), 231-247.
Olaniyi, O., & Babatunde, M. A. (2023). Audit committee effectiveness and financial reporting
quality in Nigeria. Journal of Accounting and Management, 35(2), 120-138.
Osinubi, T. S. (2023). Enhancing corporate transparency through improved governance
practices in Nigeria. Journal of Financial Management and Accountability, 29(3), 175-
Ozoemelam, G. (2024). Impact of corporate characteristics in mitigating financial reporting
delays in Nigerian listed companies. International Journal of Business and
Management (IJBM), 3(1), 84–100. https://doi.org/10.56879/ijbm.v3i1.34
Patience C., D. . O. (2024). Board attributes and audit report lag of quoted industrial firms in
Nigeria. BW
Academic
Journal,
Retrieved
from
https://www.bwjournal.org/index.php/bsjournal/article/view/1680
Rosly, A. S., Shafie, R., & Ishak, R. (2024). Corporate governance factors and financial
reporting timeliness: A systematic review and future research. PaperASIA, 40(3b),
121–131. https://doi.org/10.59953/paperasia.v40i3b.129
Sanusi, L. S., & Sanni, I. A. (2022). Corporate governance in Nigeria: Historical perspective
and future outlook. Nigerian Journal of Corporate Law, 12(1), 56-78.
Smith, J. (2023). The role of independent directors in corporate governance. Business Ethics
Quarterly, 33(1), 45-60.
Uwuigbe, O. R., Uwuigbe, U., & Daramola, A. O. (2023). Corporate governance and the
timeliness of financial reporting: Empirical evidence from Nigeria. Research Journal
of Finance and Accounting, 14(1), 23-35.


DOWNLOAD PDF

Back