Firms' Characteristics and Quality of Financial Reports of Firms in Nigeria Industrial Goods Sector

Abstract: The study examined firms’ characteristics and reporting quality of firms in Nigeria using ten(10) listed firms in the industrial goods sector in the country, from 2011-2020. The study deviated from other studies by using the Roychoudhury (2006) model to measure high-quality earnings and adopted the panel approach making a total of 100 firm year observations. The High-quality reporting was measured by discretionary accruals as the dependent variable while four variables were used which constituted the objectives(Financial leverage, firm size, profitability, and ownership structure). The paenl regression results showed that financial leverage, firm size, profitability, and ownership structure significantly impact the high-quality reporting of listed industrial good firms in Nigeria, according to this study and in conformation with extant literature. Large, wealthy companies provide great financial reporting by prohibiting managers from using accruals to manipulate results. Managers falsify the books due to higher financial leverage and higher concentrated director ownership. This study recommends listed industrial products companies focus more on ownership structure than board structure to improve financial reporting integrity and prevent management accounting manipulation Keywords: High-Reporting quality, leverage, ownership structure and discretionary accruals. Title: Firms’ Characteristics and Quality of Financial Reports of Firms in Nigeria Industrial Goods Sector Author: OSUJI, C.C., OKWUAGWU, P.N. International Journal of Management and Commerce Innovations ISSN 2348-7585 (Online) Vol. 10, Issue 1, April 2022 - September 2022 Page No: 283-292 Research Publish Journals Website: www.researchpublish.com Published Date: 15-June-2022 DOI: https://doi.org/10.5281/zenodo.6646687 Paper Download Link (Source) https://www.researchpublish.com/papers/firms-characteristics-and-quality-of-financial-reports-of-firms-in-nigeria-industrial-goods-sectorInternational Journal of Management and Commerce Innovations, ISSN 2348-7585 (Online), Research Publish Journals, Website: www.researchpublish.co