Chidinma Ezeigbo 1 and Edwin Fashola 2
Accounting Department, College of Management Sciences, Michael Okpara University of
Agriculture, Umudike, Abia State Nigeria
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. The
objectives of this study were to respectively analyze and determine, individually and jointly, the influence of board size, board composition and audit committee size on financial reporting quality. Corporate governance was proxied with board size, board composition and audit committee size. The study adopted survey and ex post facto research design. Twelve (12) listed banks were chosen through a purposive sampling technique and data extracted from the annual reports of these banks from year 2011 to 2020. The data were analyzed using descriptive statistics, correlation matrix and panel data regression analysis.
Findings revealed that Board size and Audit committee size have positive but not significant 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 researcher recommended that greater focus
on corporate governance indicators so as 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 .