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Non-Financial Disclosures and Financial Reporting Quality of Listed Oil and Gas Companies in Nigeria

DAVID, Otobong Victor, AKPAN, Dorathy Christopher, UWAH, Uwem Etim

Abstract

Non-financial information is frequently disregarded and taken to add no inherent value on the financial reporting practices of companies. This has resulted in a glaring lack of emphasis on the disclosure of non-financial information, which has left a significant void in the awareness and appreciation of the wider elements that impact the reliability of firms’ financial reports. The main objective of this study was to examine the effect of non-financial disclosures on financial reporting quality of oil and gas companies listed on Nigerian Exchange Group from 2015-2024. The research design adopted for this study was ex post facto and secondary data were used. The population of the study consisted of 10 listed oil and gas companies. A census of the entire population was used for the study. The method of data analysis employed was ordinary least square regression technique and the statistical package employed was E-views version 10. The results of the analysis revealed that human capital disclosure and risk management disclosure have significant positive effect on financial reporting quality while corporate governance disclosure has no significant effect on financial reporting quality of the listed oil and gas companies in Nigeria. It was thus concluded that the disclosure of non-financial information enhances the quality of financial report of listed oil and gas companies in Nigeria. Based on this, the study recommended that management of oil and gas companies in Nigeria should invest in their human capital and ensure comprehensive disclosures of these practices as these enhance transparency and foster financial reporting quality. 1.0 Background to the study The information needs of business and society in general can no longer be sustained only on the basis of provision of financial data. In recent years, the role of non-financial disclosures has gained prominence in shaping the perceptions and behaviors of stakeholders, incl

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