Quoted Companies Attributes and The Reliability of Financial Reporting in Nigeria
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This study examines the impact of company attributes on the reliability of financial reports in Nigeria, using
a sample of 61 quoted companies' annual reports for the years 1999-2007. The data were analysed and
results estimated using Ordinary Least Square (OLS} Regression which was complimented with the Panel
Data Estimation Technique. The study reveals that profitability is the major companies' attribute that
influences the overall quality of financial reports reliability in Nigeria. The implication of this finding is that
when firms make profit, the financial report will more likely be reliable and otherwise when loss is made
and may give rise to dysfunctional behaviour in order to satisfy market expectation through earnings
manipulation. The study recommends that there should be provisions in the various laws dealing with
companies' attributes which have the potential to impair the quality of financial reports. Similarly,
emphasis should also be focused on the qualities possessed by the preparers and those who attest to
financial statements since such persons can manipulate the financial statements to show desired outcome.
Keywords
HF5601 Accounting