The Effect Of Corporate Governance On Financial Reporting Quality Of Listed Deposit Money Banks In Nigeria
ABSTRACT
This study investigated the effect of corporate governance on financial reporting quality of listed deposit money banks (DMBs) in Nigeria, with its specific objectives examining the effect of size of board of directors, board independence and audit committee meetings on financial reporting quality of listed deposit money banks in Nigeria using cross sectional data of these banks from 2018 to 2022. Adopting ex-post facto research design and with a population and sample size of 19 deposit money banks with national and international authorization, the data for this study were obtained mainly from the annual reports of the banks under study. The main tool of analysis was the Ordinary Least Squares (OLS) using the multiple regression method, particularly E-Views11. The findings of this study indicated that corporate governance (board size, board independence and audit committee meetings) has a significant effect on financial reporting quality in deposit money banks in Nigeria, hence it was concluded that the quality of financial reports of companies relies on compliance with code of corporate governance, which emphasizes the need for adopting financial practices that would bring about credibility of the financial reports of deposit money banks. On this note, it was recommended that the Securities and Exchange Commission should strengthen the code of corporate governance by advocating an increase in the number of directors that are independent of the board and also advocating the need for audit committees to increase the frequency of meetings held so as to enhance the quality of financial reports in Nigeria.