Effect of Firms’ Characteristics on Timeliness of Financial Reports of Quoted Insurance Companies in Nigeria

Abstract

Financial information needs to be made available to users as rapidly as possible to make corporate financial statement information relevant for decision making process. Timely reporting on financial statements is necessary for healthy financial markets. Against this backdrop, this study investigates the effect of firm characteristics on timeliness of financial reports on Nigerian insurance companies from 2008-2017. The study adopts ex-post facto research design and the data were sourced from the financial statements of the sampled companies. The dependent variable was measured by audit report delay while the independent variable was proxied by board size, firm leverage ratio and firm size. The analysis was conducted with the aid of STATA 12 software. The data were analysed by Pairwise correlation, descriptive statistics and ordinary least square (OLS) multiple regression technique. The result reveals that board size has a significant negative effect on audit report delay while firm size has a significant negative effect on audit report delay. The result further reveals that firm leverage has an insignificant negative effect on audit report delay. The study recommends among other things that management of large companies should always ensure that highly qualified personnel are placed at the final accounts section of the parent company and that compilation of financial reports should be gradual and not only towards the accounting year end to avoid unnecessary delay in publication of financial statements.

Bankruptcy Risk Indicators and Financial Reporting Timeliness: The Case of Companies Listed at Nairobi Securities Exchange, Kenya

“…The obtained results provide important implications for bankruptcy prediction research and practice, especially in terms of identifying the most important financial predictors. Other similar studies include Adediran et al (2019), Ferdayani et al (2019), Savitri et al (2019), Soewignyo and Wanda (2020), Wibowo and Saleh (2020).…”

“…Studies by Alfraih (2016); Ohaka and Akani (2017); Adediran et al, (2019); Borgi et al (2021);Ferdayani et al, (2019); Dewi et al ( 2019); Savitri et al (2019);Sunarto et al, (2020); Wibowo and Saleh (2020); Borgi et al (2021) had conceptual gaps. In addition, all the mentioned studies did not establish the effect of bankruptcy risk indicators on financial reporting timeliness of listed companies in Kenya.…”

“…Studies by Alfraih (2016); Ohaka and Akani (2017); Adediran et al, (2019); Borgi et al (2021);Ferdayani et al, (2019); Dewi et al ( 2019); Savitri et al (2019);Sunarto et al, (2020); Wibowo and Saleh (2020); Borgi et al (2021) had geographical gaps because they were not conducted in Kenya. This implies that the results may be inapplicable in Kenya since the social economic environment of Kenya and other countries differ.…”

“…The current study seeks to address this gap. Adediran et al, (2019);Ferdayani et al, (2019); Savitri et al (2019); used Ordinary least square (OLS) multiple regression technique and Borgi et al (2021) used panel regression. These regression methods differ with the proposed regression model in the study.…”