EFFECTS OF FIRM CHARACTERISTICS ON FINANCIAL REPORTING QUALITY OF LISTED DEPOSIT MONEY BANKS IN NIGERIA

Abstract

This study assessed the effects of firm characteristics on financial reporting quality of listed deposit money banks in Nigeria. The study had a population of fourteen (14) listed deposit money banks and a sample size of eight (8) banks was arrived at based on two criteria that only the listed deposit money banks with data over the period of the study and those banks that have not changed their names over time were considered. Secondary method of data collection was used in gathering data from the sampled banks and it was analysed using Ordinary Least Square regression technique. The findings revealed that leverage and firm age had positive and significant effect on financial reporting quality of listed deposit money banks in Nigeria while firm size and return on assets had negative effect on financial reporting quality of listed deposit money banks in Nigeria but only return on assets had a significant effect. The study recommended inter alia that regulatory authorities such as the Financial Reporting Council of Nigeria (FRCN) should ensure that profit making banks are well examined to ensure that high quality financial reports of listed deposit money banks in Nigeria are produced to provide useful financial information to its numerous users. It was also recommended that listed deposit money banks should be increasing leverage and be growing their firm over time to enhance financial reporting quality. It is also recommended that listed deposit money banks should be reducing their assets to an optimal level in order to enhance financial reporting quality. Also, management of listed deposit money banks in Nigeria should be increasing their profit without engaging in earnings management.