Submit your papersSubmit Now
For Enquiries: [email protected]
IIARD LogoIIARD

Firm Characteristics and Quality of Financial Reporting Quality in Nigerian Industrial Good Firms

Christmas I.D Ofurum, and Apete Collins Ph.D, CAN

Abstract

This study determined the effect of firm characteristics on the quality of financial reporting of listed industrial goods firms in Nigeria. Ex Post Facto research design was employed for the study. The data were extracted from the eight selected industrial goods firms in Nigeria. Pool regression analysis was employed to test the hypotheses. The study indicated that firm profitability has no significant effect quality of financial reporting of listed industrial good firms in Nigeria at 5% level of significance. However, it was revealed that firm leverage and firm liquidity have significant effect quality of financial reporting of listed industrial good firms in Nigeria at 5% level of significance. The study hence recommended among others that there is need to monitor High-Leverage Firms closely. Regulators such as the Financial Reporting Council of Nigeria and the Securities and Exchange Commission should establish target monitoring programs specifically for highly geared industrial firms, as debt pressures can incentivize aggressive accounting or earnings management. Key words: Firm characteristics, Quality of financial reporting, Firm leverage and Firm liquidity

Keywords

Firm characteristicsQuality of financial reportingFirm leverage and Firm liquidity

References

Adenle, O. E., Abiboye, O. O., Ojuade, G.A., Sulaiman, A. A., Adeoye, L. A., & Ayeni, F. T. (2024). The influence of firm attributes on financial performance of listed Nigeria consumer goods firms: A moderating effect of leverage. TSU International Journal of Accounting and Finance (TSUIJAF), 2 (2), 17-31. Afsay, Akram, Arash Tahriri, and Zabihollah Rezaee. 2023. A meta-analysis of factors affecting acceptance of information technology in auditing. International Journal of Accounting Information Systems 49: 1–27. 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. Alhasanko, R. (2024). Assessing the financial health of the company and its relationship to its market value added: Evidence from industrial companies listed on the Amman Stock Exchange for the Period. International Journal of Finance and Accounting, 9 (3), 37–51. Amirah J. A., Mohammed, I. & Zakari, Y. G.(2023). Firm characteristics and financial reporting quality of listed non-financial firms in Nigeria. International Journal of Intellectual Discourse 6(3). ISSN: 2636-4832. Ali, H. (2023). What is liquidity? What is means and how to calculate it? Anugerah Hulu, Y., Toni, N. & Sitepu, W. R. B. (2022). The effect of audit quality, financial condition and earnings management on the going concern audit opinion with corporate mechanism as a moderating variable. Oblik ifinansi, 3(97), 119-128. Chabachib, M., Hersugondo, H., Ardiana, E., & Pamungkas, I. D. (2020). Analysis of company characteristics of firm values: Profitability as intervening variables. International Journal of Financial Research, 11 (1). Chen, H. C., Chiang, H.-T., & Voren, D. (2023). The Impact of the COVID-19 Pandemic on Quality of Financial Reports. Journal of Applied Finance & Banking, 13(4), 1-29. Collins, D. W., Pungaliya, R. S., & Vijh, A. M. (2017). The effects of firm growth and model specification choices on tests of earnings management in quarterly settings. The Accounting Review, 92(2), 69–100. https://doi.org/10.2308/accr-51551. Činčalová, S., & Hedija, V. (2020). Firm characteristics and corporate social responsibility: The case of Czech transportation and storage industry. Sustainability, 12(5), 1992. Colma E. and Etale L.M. (2024) Firm Characteristics and Corporate Social Responsibility of Listed Consumer Goods Sector Firms in Nigeria, Global Journal of Arts, Humanities and Social Sciences, 12(3), pp.63-76 agerial and Decision Economics, 43 (4), 894-905. De Laan, A., Buitendag, N., & Fortuin, G.S. (2017). Firm characteristics and excellence in integrated reporting. South African Journal of Economic and Management Sciences, 20(1), 1-8. Dechow, P., Ge, W., & Schrand, C. (2010). Understanding earnings quality: A review of the proxies, their determinants and their consequences. Review ,60,1-12 Handoyo, S., Auharman, H., K-Ghani, E., & Soedarsono, S. (2023). The determinants of a firm’s strategic orientation and its implications on performance: A study on Indonesian state- owned enterprises. Cogent Business & Management, 10 (2). Hussaini, B., & Gugong, B.K. (2015). Audit committee characteristics and earnings quality of listed food and beverage firms in Nigeria. International Journal of Accounting, Auditing and Taxation, 2(8), 216-227. Idris, M., & Adediran, S.A. (2023). Moderating role of firm size on corporate attributes and JAFM JAFM JAFM timeliness of financial reports of quoted consumer goods companies in Nigeria. International Journal of Global Affairs, Research and Development , 1 (1), 66- 80. Ipino, E., & Parbonetti, A. (2017). Mandatory IFRS adoption: the trade-off between accrual- based and real earnings management. Accounting and Business Research, 47(1), 91-121 Idogho, A. M., Onmonya, L. O., Uthman, A.B., Ebogbue, C. C. & Bosun-Fakunle, Yemisi F (2025). Firm characteristics and profitability in nigerian consumer goods firms: assessing the moderating effect of firm size. Global Journal of Management and Business Research: D Accounting and Auditing, 35/1.0 Year 2025. Double Blind Peer Reviewed International Research Journal Publisher: Global Journals Online ISSN: 2249-4588 & Print ISSN: 0975-5853 Msomi, T.J., & Nyide, C. (2021).Nexus of firm characteristics and financial performance of non- life insurance companies in South African development community. Morris, O., Nuradden, U., Miko, N., & Abdullahi, M. (2023). Firm’s attributes and financial leverage of listed consumer goods firms in Nigeria: A moderating role of cash conversion cycle. African Banking and Finance Review-Journal , 5 (5), 165-180. Ozcan, I., Unal, E. A., & Yener, U. (2017). The effect of firm size on profitability: evidence from Turkish manufacturing sector. Journal of Business Economics and Finance, 6(4), 301-308. Olowookere, J. K., Ajiboye, O. O., & Ibrahim, J. (2022) Firm performance attributes and quality of financial reporting of listed non-financial firms. Izvestiya. Journal of Economics, Management and Informatics, 66 (3–4), 213 – 227 Richmell B. A. (2024). Examining the Moderating Role of Firm Characteristics in the Corporate Governance-Financial Reporting Quality Nexus: Evidence from a Developing Country. Business Ethics and Leadership, 8(1), ISSN – 2520-6311; ISSN – 2520- 6761 Shapovalova, A., Olena K., Oleh P., Tetyana L., and Zoriana, M. (2023). Modernization of the national accounting and auditing system using digital transformation tools. Financial and Credit Activity: Problems of Theory and Practice 4: 33–52. Soyemi, K. A., & Olawale L. S. (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. Ukavwe H. & Okolie A. O. (2024). Firm attributes and financial reporting quality of listed non- financial companies in Nigeria. . 10(10), . IIARD – International Institute of Academic Rese arch and Development Wakaisuka-Isingoma, L., Aduda, J., Wainaina, G., & Mwangi, C. I. (2016). Firm characteristics, external environment and performance of financial institutions in Uganda. Congent Business & Management, 3 (1). Zubairu, A., Adamu, H., & Abdulkadir, A. L. (2022). Firm characteristics and financial performance of consumer goods manufacturing firms in Nigeria: Moderating effect of some key monetary variables. Saudi Journal of Business and Management Studies, 7 (8), 222-228.

More Articles from JOURNAL OF ACCOUNTING AND FINANCIAL MANAGEMENT

Analysis of Sustainable Investment Strategies on Emerging Financial Markets in Nigeria

Author: Abeke, Margaret Ovoradua, Yemisi F. Bosun-Fakunle, PhD

Risk Assessment and Fraud Prevention of Oil and Gas Companies in Rivers State

Author: ORUPABO Ibimietamunonengiboofori, and Prof. B. D. Kiabel

Challenges of Auditing in the Public Sector and Their Implications on Accountability

Author: Apete Collins PhD, CAN and Igbogbo, Opetorise Favour

Working Capital Management and Profitability of Listed Manufacturing Companies in Nigeria

Author: Osung, Gabriel Okon, Obi-Ekpelinwa, Maryviolet Uzoamaka, Micaiah, Samuel Tom, Ekanem, Ekaete Victor, Ukpe, Margaret, Thompson