Board Structure and Financial Reporting Quality in Quoted Non-Financial Firms in Nigeria

Abstract

This study investigated board structure and financial reporting quality among quoted non-financial companies in Nigeria. The broad objective was to determine the relationship between, board independence, board expertise, board meetings and audit committee size and financial reporting quality among quoted companies in Nigeria. The study employed ex-post facto research design, covering a period of six years (2013 to 2018). The population size is one hundred and fourteen (114) non-financial companies in Nigeria, while fifty-nine (59) quoted companies constituted the sample size. Content analysis of financial statements of sampled companies were carried out and data were analysed using descriptive and inferential statistics, like correlation matrix and panel least square regression. The study found that board independence, board expertise and audit committee size have significant and positive relationship with financial reporting quality, which by implication, board independence, board expertise and audit committee size were critical factor enhancing financial reporting quality among quoted companies in Nigeria. The research also found board meetings to have negative relationship with financial reporting quality.The study recommended that board of companies should consists of more independence board members made up of male and female with professional financial expertise capable of enhancing financial reporting quality. Keywords: Board independence, Board expertise, Board meeting, Audit committee size, financial reporting quality, Panel Least Square Regression