An Empirical Analysis on the Financial Reporting Quality of the Quoted Firms in Nigeria: Does Audit Committee Size Matter?

Eyenubo, Samuel Akpovwre; Mohamed, Muharis; Ali, Mohammad

doi:10.6007/ijarbss/v7-i9/3308

Cited by 6 publications

(7 citation statements)

References 32 publications

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“…This shows that the higher the AUDCIND of non-financial firms in Nigeria, the higher the Share Value. This is the same conclusion of Abbot (2002); Klein (2002); Bedard et al (2004) and Persons (2005), Miko and Kamardin (2015), Wiralestari and Tanzil (2015), Eyenubo, Mohamed and Ali (2017), Echobu, Okika and Mailafia (2017) and Bako (2018) but opposed the conclusion reached by Waweru andRiro (2013) andMajiyebo, Okpanachi, Nyor andYahaya (2018).…”

Section: Regression Analysessupporting

confidence: 52%

Financial Reporting Quality and Share Values of the Quoted Non-Financial Firms in Nigeria

2022

RJFA

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The study examined the level of compliance with financial reporting standards of quoted non-financial firms in Nigeria and investigated the impact of financial reporting quality on share values of the quoted non-financial firms in Nigeria. These were with a view to determining the effect of financial reporting quality on the firms' value of quoted non-financial firms between 2004 and 2021.The study employed secondary data. The population of this study was 176 quoted non-financial firms listed on the Nigeria Stock Exchange. Fifty firms were purposively selected based on the availability of complete financial information for the sampled period. Data on cashflow accrual ratio, statements of financial position accrual ratio as proxies of financial reporting quality, firms' size, auditors' type, share values, board size, leverage, audit committee size, age and firms' liquidity were sourced from the audited annual financial report of the firms and factbook of Nigeria Stock Exchange. Data collected were analysed using percentages fixed effect model, random effect model and pooled OLS method.The results showed that the cashflow accrual ratio as a proxy of financial reporting quality has no significant effect on the value of shares but negative relationship with share values confirmed that lower cashflow accrual ratio is an indication of good financial reporting quality. Also, the result showed that all the independently variables are good predictors of share values with adjusted R-square of 76%. The study concluded that financial reporting quality has a positive impact on the market value of quoted nonfinancial firms in Nigeria.

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Section: Regression Analysessupporting

confidence: 52%

Financial Reporting Quality and Share Values of the Quoted Non-Financial Firms in Nigeria

2022

RJFA

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“…The study therefore concludes that IFRS have impacted on financial reporting in the Nigerian Banking sector. Eyenubo et al (2017) analysed whether audit committee size matters in the financial reporting quality of the quoted firms in Nigeria. Using a sample of 189 companies and 6-year observation from the period of 2011-2015, their findings indicated that corporate governance recommendation as a mean of strengthening the monitoring and oversight role of audit committee plays an importance role in the financial reporting process.…”

Section: Frq After the Adoption Of Ifrsmentioning

confidence: 99%

“…In African countries that have adopted IFRS like Ghana, in spite of increasing research in the area of IFRS adoption and its attendant influence on FRQ, empirical research on FRQ of published annual reports of listed companies is very limited. In this regard, there has been research in African countries focusing on IFRS compliance and disclosures (Odia & Ogiedu, 2013;Zakari, 2014;Aboagye-Otchere & Agbeibor, 2012;Agyei-Mensah, 2012;Agyei-Mensah, 2013), the influence of firm characteristics and FRQ (Appiah, Awunyo-Vitor, Mireku, & Ahiagbah, 2016), financial reporting and tax compliance (Abedana, Omane-Antwi & Oppong, 2016;Amidu, Yorke & Harvey, 2016), audit and cost of capital (Coffie, Bedi, & Amidu, 2018), FRQ and audit fees (Musah, Anokye, & Gakpetor 2018), IFRS and financial reporting in banks and manufacturing firms (Abata, 2015;Okoye & Nwoye, 2018), financial reporting and economic growth (Temitope, Chibuzo, & Tolulope, 2019), and FRQ and corporate governance (Uwalomwa, Eluyela, Olubukola, Obarakpo, & Falola, 2018;Eyenubo, Mohamed, & Ali, 2017). However, it is surprising that no study as far as the researcher knows has been done to assess the extent to which published financial reports of listed firms truly reflect FRQ dimensions proposed by IFRS and IASB, especially in Ghana.…”

Section: Introductionmentioning

confidence: 99%

Assessing Financial Reporting Quality of Listed Companies in Developing Countries: Evidence from Ghana

Mbawuni¹

2019

IJEF

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The adoption of International Financial Reporting Standards (IFRS) in Ghana is expected to improve the quality of financial reporting among companies in Ghana. This paper assesses the extent to which financial reports of companies listed on the Ghana Stock Exchange (GSE) meet financial reporting quality (FRQ) dimensions of IFRS. It was a descriptive study that employed two experienced professional chartered accountants who practice as independent auditors to use FRQ criteria to assess financial reports of 20 purposively selected companies listed on GSE for 2012 and 2013. Given the high inter-rater reliability (r = .96, 95% C.I., p < .0001), the findings indicate that, overall, FRQ of the listed companies meet FRQ standards by 56.48%. Generally, the financial reports were 60.95% faithfully represented, 51.01% relevant, 50.10% understandable, 40.09% comparable and 19.75% timely audited (or 80.25% untimely). Fundamental FRQ characteristics were more prevalent than enhancing FRQ. Poorly rated FRQ areas were in the use of historical cost as measurement basis, no use of graphs and tables to clarify information, no inclusion of comprehensive glossary, ratios and index, no information on adjustment in past accounting figures for future decisions, and no comparison of current and previous accounting periods and with those of other firms. The study concludes that FRQ of the listed companies is moderate but needs considerable improvement. Implications to theory, practitioners, policy makers and industry regulators are discussed. This study fills the dearth of empirical research in FRQ in IFRS-compliance companies in Sub-Saharan Africa in general and Ghana in particular.

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“…rejected and is supported by the studies of Al-Khonain and Al-Adeem (2020);Muhammad and Isah (2020); Almaqtari, Hashed, Shamim and Al-Ahdal (2020); Ajao and Oluwadamilola, (2020);Kwanbo and Tanko (2018);Umobong and Ibanichuka (2017); Akeju and Babatunde (2017). The findings however, is not in line with Eke (2018);Eyenubo, Mohamed and Ali (2017) andOnuorah and Imene (2016).…”

mentioning

confidence: 69%

Financial Reporting Quality and Control System: A Mixed Approach Assessment

Kwanbo

Baba

Akanet

et al. 2023

IJOMFA

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Listed firms have been reported by regulators to be tangled in financial scandals that have made the quality of their financial reports doubtful due to inadequate control systems of risk assessment, monitoring, information and communication, control environment and control activity. This study examines the relationship between financial reporting quality and the internal control system of listed firms in Nigeria. The research relieda hybridixed approach that sourced primary and secondary data using a bilateral convergent paralleled mixed design. The research method adopted is the interpretive post-action multiple case study that employs reduction and multiple regression as its data analysis techniques. Comparatively, results from both sources of data indicate that internal control system components are determinants of financial reporting quality. One of the implications of the findings on practice is that having financial and accounting experts on the board of directors that uses such expertise on risk assessment inhibits not achieving reporting quality. The study concludes that risk assessment improves financial reporting quality and recommends more such experts on the board of Nigerian firms.

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An Empirical Analysis on the Financial Reporting Quality of the Quoted Firms in Nigeria: Does Audit Committee Size Matter?

Cited by 6 publications

References 32 publications

Financial Reporting Quality and Share Values of the Quoted Non-Financial Firms in Nigeria

Financial Reporting Quality and Share Values of the Quoted Non-Financial Firms in Nigeria

Assessing Financial Reporting Quality of Listed Companies in Developing Countries: Evidence from Ghana

Financial Reporting Quality and Control System: A Mixed Approach Assessment

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