Corporate Governance and Financial Reporting Quality of listed Nigerian Banks
Chidinma Ezeigbo1 and Edwin Fashola2 1&2Department of Accounting,
College of Management Sciences, Michael Okpara University of Agriculture, Umudike, Abia State.
The multiplication of corporate scandals has prompted the need to improve the relevance of financial reporting by setting up good governance structures. Despite various measures put in place by the regulatory agencies, there were recurring cases of poor quality of financial statements. The relationship between corporate governance and information quality has been strongly debated in the context of developed countries. It is only
recently that attention turned to the study of governance and financial disclosure in developing countries, hence the study on the effect of corporate governance on financial reporting quality of listed banks in Nigeria. This paper evaluates the influence of board size, board composition and audit committee size on financial reporting quality of banks. Ten (10) listed banks were chosen through a purposive sampling technique and data extracted from their annual reports from year 2011 to 2020. The data were analyzed using descriptive statistics and panel regression analysis. Findings reveal that Board size and Audit committee size have positive but insignificant effect on the financial reporting quality of the banks whereas Board composition have positive and significant effect on the financial reporting quality of the banks. The paper recommends that greater focus on corporate governance indicators should be given in other to bring about global standard financial reporting in the Nigerian banking sector.
Keywords: Corporate Governance, Financial reporting Quality, board size, board composition, audit committee size.