FIRM ATTRIBUTES, ACCOUNTING REGULATIONS AND FINANCIAL REPORTING QUALITY OF LISTED NON-FINANCIAL FIRMS IN NIGERIA

Abstract

Concerns about the credibility of financial statements produced by Nigerian non-financial firms have continued to intensify, largely due to weak internal corporate structures and inconsistencies within the regulatory environment. To address these issues, this study investigates how internal firm characteristics and accounting regulatory practices shape the financial reporting quality based on earnings quality of non-financial companies in Nigeria. An ex-post facto research design was adopted, focusing on thirty (30) manufacturing companies based in Lagos State. Data covering the period 2012–2023 were subjected to descriptive, inferential, and panel regression analyses. Findings indicate that CEO managerial ability is negatively strong and significant effect on financial reporting quality (ꞵ = -0.6520, p = 0.000), CEO Compensation has positive but insignificant effect on financial reporting quality (ꞵ = 0.0009, p = 0.2770), audit committee gender diversity has positive and strong significant effect on financial reporting quality (ꞵ = 0.5809, p = .000), Sustainability Disclosure Practice has positive but insignificant effect on financial reporting quality (ꞵ = 0.0003 p = 0.94) and risk management disclosures has positive but insignificant effect on financial reporting quality (ꞵ = 0.464, p = 0.018). The study concludes that managerial focus should be directed toward strengthening audit committee gender diversity and risk management disclosures while mitigating the adverse effects of CEO managerial ability to improve financial reporting quality outcomes.