The Attributes of Corporate Governance and Financial Reporting Quality of Listed Agricultural Firms in Nigeria

Abstract

This study examined the relationship between the attributes of corporate governance and financial reporting quality. It made use of listed agricultural companies on the Nigeria stock exchange. This study is anchored on agency theory. Descriptive research design and secondary data extracted from the financial statement of the sampled companies were used. The dependent variable was financial reporting quality proxy by discretionary accruals; the independent variable was the attributes of corporate governance measured by board independence, board size, and board gender diversity while the control variable was firm size. The study used multiple regression analysis to analyze the data. It concluded that the attributes of corporate governance was negatively and significantly related to discretionary accruals i.e. a percentage increase in the attributes of corporate governance reduced discretionary accruals by 132%, thus improving the financial reporting quality. The study, therefore recommended that the attributes of corporate governance especially in agricultural companies listed on the Nigeria stock exchange should be increased.