ABSTRACT
The study empirically examines corporate governance attributes and financial reporting quality in Nigeria (sectoral analyses). In order to provide answers to the research questions raised in this study, data were generated from the annual report of companies in two sectors (Oil and Gas sector and Banking) listed on the Nigeria Stock Exchange for the period 2015– 2018 for general analysis, and the period of 2016-2018 for sectoral analyses.
The study employed Board Independence, Ownership Concentration and Internal Control System as proxies for corporate governance attributes; and used discretionary accruals as a proxy for financial reporting quality. The data were analyzed using descriptive statistics, correlation analysis, and regression analysis in order to achieve the stated objectives of the study, as well as test the relevant hypotheses.
It was observed that there is a positive significant relationship between board independence and financial reporting quality of quoted firms in Nigeria when pooled together, but when delineated into various sectors it was found to be negative in oil and gas sector and positive in banking sector. The second variable result revealed that a positive relationship exist between ownership concentration and financial reporting quality of quoted firms in Nigeria when polled together, but when delineated into the various sectors (Banking and Oil and Gas sector) it was found to be positive in the banking sector but negative in the oil and gas sector. Finally, internal control system was found to have a positive and significant relationship with financial reporting quality in Nigeria both when pooled and delineated into sectors. The study thus recommended that board independence should be emphasized in most organization, ownership concentration should be monitored and also, adequate internal control system should be put in place in organizations.
