Managerial Efficiency and Financial Reporting Quality in Quoted Deposit Money Banks in Nigeria
DOI:
https://doi.org/10.54536/ajebi.v5i2.7400Keywords:
Asset Growth, Financial Reporting Quality, Firm Age, Firm Size, Leverage, Liquidity, Managerial Efficiency, Ownership structure, ProfitabilityAbstract
The paper investigated the quality of financial reporting in Nigerian banks, the impact of certain firm-specific institutional factors, and the how corporate governance mechanisms influence the relationship between managerial efficiency and reporting quality. Discretionary accruals were utilized in the study as a gauge of the financial reporting quality because they provide a reliable assessment of earnings management in Nigerian banks. The study employed a retrospective method using data on 11 quoted deposit money banks in Nigeria and the period 2014 to 2024. Audited financial statements and regulatory reports provided the firm-level data. Variables included were size, leverage, liquidity, ownership, age, managerial efficiency, corporate governance mechanisms, and growth with the analysis being done through econometric tests to ensure stringent and valid analysis. The results stated that the quality of financial reporting was positively and significantly influenced by size (0.0062), liquidity (0.0038) and negatively and significantly by leverage (-0.0005) and ownership (-0.0321). Managerial efficiency (0.0158, 0.0505) positively affected reporting quality, corporate governance mechanisms (-0.0236, 0.0042) negatively affected reporting quality, and their interaction (0.0519, 0.0192) enhanced the association. The values of R-squared were 0.2876 and 0.2714, which indicated moderate power of explanation. The study established that firm-specific characteristics and governance structures have a crucial role in influencing financial reporting quality, providing useful information to regulators, management, and policymakers in improving reporting practices.
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