Firm Characteristics and Quality of Financial Reporting Quality in Nigerian Industrial Good Firms

This study determined the effect of firm characteristics on the quality of financial reporting of listed industrial goods firms in Nigeria. Ex Post Facto research design was employed for the study. The data were extracted from the eight selected industrial goods firms in Nigeria. Pool regression analysis was employed to test the hypotheses. The study indicated that firm profitability has no significant effect quality of financial reporting of listed industrial good firms in Nigeria at 5% level of significance. However, it was revealed that firm leverage and firm liquidity have significant effect quality of financial reporting of listed industrial good firms in Nigeria at 5% level of significance. The study hence recommended among others that there is need to monitor High-Leverage Firms closely. Regulators such as the Financial Reporting Council of Nigeria (FRCN) and the Securities and Exchange Commission (SEC) should establish target monitoring programs specifically for highly geared industrial firms, as debt pressures can incentivize aggressive accounting or earnings management.