Accounting Standards and Quality of Financial Reporting in Selected Quoted Manufacturing Companies in Nigeria

Abstract

This paper explores how financial reporting characteristics and company qualities impact on financial reporting quality amidst the chosen manufacturing companies in Nigeria. The study assesses the effects that factors of transparency, relevance, timeliness, leverage, profitability, liquidity, company size, and the age of companies have on the quality of reporting. Using ex post facto research design a sample of 5 companies was selected from the population of 50 active quoted companies from the Nigeria exchange group as at 31 December 2024; through stratified convenience sampling. Descriptive statistics and panel regression analysis was used to analyse the secondary obtained from the annual reports of the companies. The descriptive findings indicate that the majority of the companies have fairly company-specific financial characteristics. Transparency and organisational adaptability are the most effective drivers of the financial reporting quality as opposed to financial strength or structural company characteristics. It thus advises that companies should focus on transparency, embrace modern reporting technologies and strengthen the internal governance frameworks to improve the quality of financial reporting.