Firm Trait and Financial Reporting Quality of Quoted Non-Financial Firms in Nigeria

Abstract

The aim of the study was to examine firm traits and financial reporting quality of non-financial quoted firms in the Nigerian Exchange Group. The study asserted that financial report consumers and investors stand to gain greater significance from financial reports of higher quality. Due to the accounting outrages that have ensued in Nigerian and foreign financial institutions over the years, concerns are raised about the quality of financial report. The research design adopted for the study is the discretionary accruals research design approach. The population of this study consists of all quoted non-financial firms on the floor of the Nigerian Exchange Group. There were 151 quoted firms on the Nigerian Exchange Group as at 31st December, 2023. Out of those firms, 43 were classified as financial quoted firms while the non-financial were 108. The sample size was 85 firms with readily available annual reports covering the study period (2019-2023) made up the study’s sample. Simple random sampling methodology was utilized as the sampling strategy. The panel regression analysis was utilized to regress the extracted data from the annual financial report. It was concluded in the study that firm trait variables and the financial reporting quality, in the panel regression estimate's results showed mixed results. Financial reporting quality was found to be negativelyrelated with audit firm size, although profitability and firm size did not significantly relate with financial reporting quality.