Journals Information
Universal Journal of Accounting and Finance Vol. 13(1), pp. 24 - 38
DOI: 10.13189/ujaf.2025.130103
Reprint (PDF) (676Kb)
Firm Attributes and Financial Reporting Quality of Listed Multinational Firms in Nigeria
Gbenga Ayodele Falana 1,*, Olusola Esther Igbekoyi 2, Oluyinka Isaiah Oluwagbade 1
1 Department of Accounting, Afe Babalola University, Nigeria
2 Department of Accounting, Adekunle Ajasin University, Nigeria
ABSTRACT
In recent times, poor financial reporting quality has led to accounting scandals, resulting in a loss of financing and investor confidence. Therefore, this study investigated how company attributes affected the standard of financial reporting from multinational corporations in Nigeria. This study employed a causal-comparative research design. The study's population included 46 multinational corporations located in Nigeria. To determine the study's sample size, the whole population was chosen using the exhaustive survey technique. This study's timeframe covered thirteen years, from 2011 to 2023. The data were acquired from the sampled firms' annual reports and examined using descriptive statistics and feasible generalised least squares regression analysis. The study's findings observed that firm size and innovation capacity have a relevant and beneficial effect on financial reporting quality. Conversely, firm leverage has significant adverse effects on financial reporting quality. The study concludes that some firm-specific attributes are crucial for improving the quality of financial reports. The study recommends that firms with huge assets should prioritise strategies for quality financial reporting, invest in sophisticated systems, maintain manageable leverage, and balance firm size, leverage, and innovation investment with strong financial control. The study contributes by showing a negative relationship between innovation capability and accrual ratio. While accrual ratio and innovation capability have been underdeveloped areas in literature, the study implies innovative firms focus on long-term strategies over short-term goals. While the study covers 2011 to 2023, this may not cover the long-term evolution of firms' behaviour.
KEYWORDS
Accrual Ratio, Faithful Representation, Firm Leverage, Firm Size, Innovation Capacity
Cite This Paper in IEEE or APA Citation Styles
(a). IEEE Format:
[1] Gbenga Ayodele Falana , Olusola Esther Igbekoyi , Oluyinka Isaiah Oluwagbade , "Firm Attributes and Financial Reporting Quality of Listed Multinational Firms in Nigeria," Universal Journal of Accounting and Finance, Vol. 13, No. 1, pp. 24 - 38, 2025. DOI: 10.13189/ujaf.2025.130103.
(b). APA Format:
Gbenga Ayodele Falana , Olusola Esther Igbekoyi , Oluyinka Isaiah Oluwagbade (2025). Firm Attributes and Financial Reporting Quality of Listed Multinational Firms in Nigeria. Universal Journal of Accounting and Finance, 13(1), 24 - 38. DOI: 10.13189/ujaf.2025.130103.