Impact of Corporate Governance on Financial Reporting Quality of Listed Nigerian Industrial Goods Companies

Abstract

This study examined the impact of corporate governance on financial reporting quality of listed industrial goods firms in Nigeria.  The study used expo-facto and correlational as the research designs for the study while employing secondary and quantitative as the source of data collection and research approach for the study respectively. Furthermore, this study was conducted for the period of ten (10) years from 2012 to 2021. The population of this study comprised of thirteen (13) industrial goods firms listed in Nigerian. The sample comprised the (10) listed industrial goods firms in Nigeria as at 31^st December, 2021. For the techniques of data analysis, the Feasible Generalized List Square (FGLS) regression was employed to analyze the data. The findings revealed that board size, Chief executive Compensation, audit committee independence and firm size have statistical positive and significant impact on financial reporting quality of listed industrial goods firms in Nigeria. However, it was found that board independence, board professional expertise, board gender and board shareholding are jointly, negatively and insignificantly related with financial reporting quality of listed industrial goods firms in Nigeria. Therefore, it is recommended that the board of directors of the listed industrial goods firms in Nigeria should be effectively constituted with reasonable members, an autonomous audit committee while the chief executive officer (CEO) should be adequately compensated as they are empirically found to have significant impact on the financial reporting quality of listed industrial goods firms in Nigeria.