FIRM STRUCTURAL TRAITS AND QUALITY OF FINANCIAL REPORTING OF LISTED NON-FINANCIAL FIRMS IN NIGERIA

The presentation of financial reports by firms is becoming a formality because some of the happenings in many firms negate their reports. This study explored the influence of firm structural traits: firm size as well as leverage on the quality of financial reporting of listed non-financial firms in Nigeria. This study adopted the longitudinal (panel) research design. The study utilized the data gathered from listed 72 sampled firms on the Nigeria Stock Exchange from 2012 to 2020; and was analyzed using fixed effect panel regression based on the outcome of different specification tests conducted. The quality of financial reporting was proxy with discretionary accrual. The findings revealed that leverage has a negative significant influence on the quality of financial reporting of listed non-financial firms. Besides, the results indicate that firm size positively and significantly influence the quality of financial reporting of listed non-financial firms. Hence, the study recommends that leverage should be made optimal by firms so as to limit their exposure pressure of having to engage in earning management while trying to assure creditors of the firm’s ability to repay the loans.