CORPORATE GOVERNANCE ATTRIBUTES AND FINANCIAL REPORTING QUALITY OF LISTED FOOD AND BEAVRAGE FIRMS IN NIGERIA

Abstract

Corporate distresses and failure of some blue chip corporate entities globally have elicited much concern about financial reporting quality, quality of information given to users and corporate governance practices. This study was on corporate governance attributes and financial reporting quality of listed food and beverage firms in Nigeria. The objectives were to determine the influence of corporate governance attributes of board size, board independence, audit committee independence, board composition and board consistency on accounting conservatism, and on earnings persistence. The ex-post facto research design was adopted with the use of secondary data from Nigerian Stock Exchange. The population was 120 listed firms that met all requirements and the sample size was 31 food and beverage firms. Therefore, Least square regression was used to test relationship between variables and t-test was used as a criterion for accepting or rejecting formulated 10 hypotheses. The results of the test indicated that board size has a significant but negative influence on accounting conservatism, while board composition has a positive and significant influence on accounting conservatism. Board independence and all other attributes have no significant influence on accounting conservatism. It was discovered that board size, board independence, audit committee independence, board composition and board consistency have no significant influence on earnings persistence. It was recommended among others that policies should be put in place to ensure more consistent attendance to board committee meetings by members to improve governance and enhance financial reporting quality; that those knowledgeable in financial matters should be increased in the audit committees in order to strengthen and not compromise audit committee independence and ensure integrity of the financial reports, that directors should maintain their integrity and not be proxies to the Chief Executive Officer or a dormant majority shareholder.