FINANCIAL REPORTING QUALITY AND CORPORATE PERFORMANCE OF BUSINESS ORGANIZATIONS IN NIGERIA

Abstract

Evidence from previous studies revealed that quality of financial reporting has effect on firms’ performance by placing more emphasis on the financial measures of corporate performance with little emphasis on the non-financial measures. Therefore, this study appraises the impact of financial reporting quality on performance using both the financial and non-financial measures of corporate performance. This study focuses on the listed manufacturing companies in Nigeria. Data were sourced primarily and secondarily with the use of questionnaires and annual reports of the selected companies from the periods of 2017 to 2021 respectively. The information supplied in annual reports and the questionnaires were then analyzed distinctively by the use of multiple regression analysis. The result showed that financial reporting has an impact on both financial and non-financial performance of corporate entities in Nigeria. Hence, it recommended that companies should ensure to give credible and equal reports on both the financial and non-financial performance of their businesses.