Corporate Financial Reporting and Investor’s Confidence in some quoted Industrial Companies in Nigeria

Abstract

Investors are confronted with the difficulties or issues of settling on a choice as far as deciding when to contribute, regardless of whether to contribute. An investor can reduce decision-related risk by using financial reporting information. the study aims to investigate the impact of corporate financial reporting on investors’ confidence using some quoted industrial companies in Nigeria. The study used secondary data by adopting an ex-post factor resign design through the use of a purposive sampling technique to select ten (10) listed industrial companies from the Nigeria Group Exchange. The paper was analyzed using descriptive and panel regression analysis. The study result found that corporate financial reporting significantly affects investors’ confidence (Adj. R2 = 0.541; F statistics = 4.73; p-value = 0.004). Audit firm size moderately affects the effect of corporate financial reporting on investor confidence in some listed industrial companies in Nigeria (Adj. R2 = 0.579; F statistic =5.18, p-value =0.001). Thus, the study recommended that investors maintain their current confidence level. Also, the investors, as well as the managers, can work on developing the legal framework for corporate financial reporting in light of the suggested framework being developed, and finally inspiring financial reporting, managerial, institutional and regulatory studies and research that lead to the best practices for meeting compliance obligations.