FINANCIAL REPORTING AND ORGANIZATIONAL PERFORMANCE IN NIGERIA

ABSTRACT

The purpose of this study was to evaluate the relationship between financial reporting and organizational performance in Nigeria. Data was collected from all quoted commercial banks in Nigeria. The researcher adopted Ex-post facto research method in this study. The study adopted inferential statistics for panel data analysis. Results revealed that financial reporting has significant effect on organization performance (R2 = 0.217, t= 1.747 and p = 0.005) of commercial banks in Nigeria. The study concluded that a financial accounting report is a verifiable document through which a corporate organization's condition and performance may be assessed. As a result, the study recommend the directors who are responsible for drafting this financial report in the traditional sense should ensure that it is prepared in accordance with best international practices. However, since this study has proved that both variables have a considerable influence on each other, management of commercial banks must propose new tactics to improve their financial reporting quality in order to dramatically boost their profit. Also, stakeholders and potential investors in commercial banks should be suspicious of any changes in the value of return on assets, because financial reporting quality has a direct impact on the variable, which in turn affects profit value.