Delays in financial reporting give a negative signal to the market and adversely affect the company’s market value. Financial reporting lags raise suspicions among market participants regarding concealment of any potential bad news by a firm, which may affect its share value. Thus, the study investigates the interaction of audit reporting lag and firm value in Nigerian beverage and food companies. Audit delays lead to the late publication of financial statements, enhancing the information asymmetry problem, and affecting firm value. We obtained the data from annual reports of 10 listed companies for five years. The Generalized Method of Moments (GMM) estimation is used to analyze the data. The results suggest that audit delays do not affect the market value of a firm. Previous studies mainly focus on the relationship between corporate governance firm characteristics, and audit reporting lag in Nigeria. To the best of our knowledge, the impact of audit delays on firm value in Nigeria is yet to be adequately explored. The finding may help statutory bodies in reducing the period of financial reporting. The results may also help firms improve their performance and promote an environment that may give investors confidence. This study has focused on the food and beverage sector in Nigeria. Future studies can be undertaken in other sectors which may bring more insight to the issues related to financial reporting lags.
Introduction Governments all over the world set structures that enable their economy to either grow or be sustained, while also paying attention to the maintenance of peace and order, as well as ensuring the security of lives and property and food. Despite the use of environmental accounting to curtail most of the environmental issues that ranges from environmental degradation to environment restoration in order to avoid unnecessary conflict among stakeholders and also insecurity of lives and property, (Igweonyia, 2016), there is the need to promote a sustainable environment by accounting for peace. Ellawule (2018) opined that measuring a country's economic performance has gone beyond the country's Gross Domestic Product (GDP) or Gross National Product (GNP), which only measures economic growth. The measurement of the level of human development through the use of Gross National Product (GNP) for different countries was first criticized by the pioneer United Nation Report of 1954 in which for standard of living was made. The level of development is reflected by openness to international trade, levels of per capita GDP, and urbanization. According to Dialoke and Edeja (2017), economic development is a concept involving two or more variables; hence, there is no single acceptable definition of it. Economic development is a process where low income national economies are transformed into modern industrial economies. It involves qualitative and quantitative development in a country's economy. Political and social transformations are also included in the concept of economic development in addition to economic changes. World Bank (2018) noted that a holistic development that considers material conditions and quality of life tells a more complex story. Arnold, (2011), stated that Economic development is related to improvement in the quality of life of people through the introduction of better packaged goods and services using recent technology and infrastructural development, reduction of risk and dynamics of innovation and entrepreneurship. The Newly Industrialized Countries have been able to achieve economic prosperity mostly due to their peaceful operational environment. Any one cannot dispute the argument
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