Michael Chidiebere Ekwe 1 Amah Kalu Ogbonnaya* 2 , John Uzoma
Ihendinihu 3 .
1,2&3 Accounting Department, College of Management Sciences, Michael Okpara University of
Agriculture, Umudike, Abia State Nigeria
*Correspondence:Email: kaluogbonnaya30@yahoo.com,08037790090

This paper assessed the effect of ownership structure on financial reporting quality of listed oil
companies in Nigeria. The ownership structure was proxy by the proportion of the total number
of common shares owned by the board of directors to the total number of common share
outstanding, while the financial reporting was computed through the 1991 Jone model of
financial reporting quality. Data for the study was sourced from the annual reports and
accounts of the sampled study oil companies. Time series data from 2006-2019 was used. The
hypotheses were tested using regression analysis technique. The result shows that ownership
structure has a significant effect on quality of financial reports of listed oil companies in
Nigeria. The study among others recommends that shareholders and investors to reconsider in
the level of the ownerships in the companies especially the institutions that invest in other
companies in other to increase their supervisory role on the management performance when
preparing financial statement, it also went further to say that with regard to structure of
company’s share ownerships that the government and the institution should consider the
influence of shareholders control over the quality of the financial reporting.
Keywords: Ownership Structure, Oil Company, Shareholders, Financial Reporting Quality.

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