Financial Reporting Quality.

Public Sector Accounting Standard Adoption and Quality of Financial Reporting in Higher Institutions in Rivers and Bayelsa States, Nigeria (Published)

This study investigated public sector accounting standards adoption and quality of financial reporting in higher institutions in Rivers and Bayelsa States, Nigeria. The study adopted survey research design. The study population consisted of all public higher institutionsin both states and a sample size of three hundred and twenty (320) was utilized for the study. Primary and secondary sources of data were employed while univariate and multivariate analysis were used for data analysis. The multivariate analysis revealed that Pre – and Post- IPSAS adoption has no significant difference in the financial reporting of relevance while faithful representation, understandability, timeliness, verifiability and comparability has significant differences in the Pre- and Post-IPSAS adoption periods in the higher institutions in Rivers and Bayelsa State.  The study concluded that Pre- and Post-IPSAS periods has no significant influence with relevance of higher institutions in Rivers and Bayelsa States;Both Pre- and Post-IPSAS adoption period has significant difference in influencing faith representation of higher institutions in Rivers and Bayelsa States;Both Pre- and Post-IPSAS adoption period has significant difference in influencing understandability of higher institutions in Rivers and Bayelsa States;Both Pre- and Post-IPSAS adoption period has significant difference in influencing timeliness of higher institutions in Rivers and Bayelsa States; and both Pre- and Post-IPSAS adoption period has significant difference in influencing verifiability of higher institutions in Rivers and Bayelsa State. Hence the study recommended amongst others that public sector entities should adopt both Pre-IPSAS and Post-IPSAS principles in preparing financial reporting quality in term of faithful representation because this study affirmed that both Pre and Post IPSA has significant difference in the financial reporting in term of faithful representation.

Keywords: Accounting Standard, Financial Reporting Quality., Relevance, timeliness, verifiability

Fair Value Measurement and Financial Reporting Quality of Insurance Business in Lagos State (Published)

The financial reporting qualities provides objective information that is useful to analysts in evaluating the financial soundness and prospect of a company. This paper attempts to examine the concept of fair value measurement as well as determine its influence on the financial reporting quality of items in the financial statement of insurance companies.  The study uses survey method and questionnaire as research instrument to elicit data from professional accountants in selected listed insurance companies in Lagos state, using conveniency sampling technique. The data collected were analyzed with the aid of SPSS. The study reveals that there is significant relationship between fair value measurement and the financial reporting quality and that the fair value measurement has significant influence on financial reporting quality at each level of the hierarchies. The study, therefore, concludes that the observance of the financial reporting qualities in the process of the fair value measurement would facilitate the production of corporate financial report useful to analysts in assessing a company’s performance and prospects. It, therefore, recommended that the professionals in the insurance industry should observe the qualities of financial reporting while preparing financial reports and during the process of fair value measurement. Also, it recommended that the management of insurance companies should engage valuation experts and professionals for objectivity and soundness in fair value measurement. This will lend credibility to the financial report.

Keywords: Fair Value, Financial Reporting Quality., fair value measurement, financial reporting system

IFRS Adoption and Financial Reporting Quality in Nigeria: A Conceptual Approach (Published)

The adoption of International Financial Reporting Standards (IFRSs) in different countries of the world have become a contemporary issue particularly with regard to the reliability of financial reports. The conceptual and empirical examination of the IFRS adoption and financial reporting quality across different sectors and countries. The study established that some studies used positive approach and some used positive paradigm. Studies used either of primary or secondary source of data, while some used mixed approach. The study found that IFRS adoption are determined by comparing the parameters concerned between pre and post IFRS regimes in given jurisdictions. The review concept and empirical evidences of IFRS adoption and financial reporting quality from many countries reveals that economic consequences of IFRS adoption significantly differ across jurisdictions though its impact has been reported to be positive in majority of studies. Also, few studies report indifferent and negative effects of IFRS adoption on financial reporting quality. The study found that it is argued that IFRS is more financial position focused. It is also observed that the impact of mandatory adoption of IFRS tends to be greater disputed than that caused by voluntary IFRS adoption. In addition, IFRS adoption are found to supersede many other domestic financial reporting standards such as Statement of Accounting Standard (SAS) in Nigeria.

Keywords: Financial Reporting Quality., IFRS adoption, Nigeria, SAS

Financial Reporting Quality and Shareholders’ Wealth Maximization: Evidence from listed Companies in Nigeria (Published)

A primary objective of shareholders’ equity investment is the expected returns. The level of returns depends largely on the operational and managerial competences and effectiveness of the managers as reflected in reported financial statements. However, the quality of financial reporting in some cases appears to be questionable. Consequent to this, this study investigated the effect of financial reporting quality on shareholders’ wealth maximization. The study population consisted of 173 listed companies on the Nigerian Stock Exchange, from which a sample of 10 companies were purposively selected based on the availability of complete and relevant data for a period of 10 years (2008-2017). Data were extracted from the published financial statements of the companies selected, while descriptive and panel data regression analyses were employed. The validity and reliability of the data were anchored on external auditors’ certification of the financial statements in line with statutory requirements. The study found that Shareholders’ wealth maximization was positively affected by the financial reporting quality (AdjR² = 0.170; F(2, 98) = 41.96; p = 0.000). The individual effects of Earnings persistence (EPES) and Earnings smoothness (ESM) on Shareholder’s wealth maximization (SHWM) were negative and statistically insignificant (β = -0.044; t₍₁₀₀₎ = -0.483 ; p = 0.629; and β = -0.038; t₍₁₀₀₎ = -0.460; p = 0.645) respectively. The study recommended that managers should exercise high level of competence and effectiveness in managing the shareholder’s equity to ensure robust returns since this is key in attracting equity investments.

Keywords: Earning smoothing, Earnings persistence, Financial Reporting Quality., Managerial competence., Shareholders

Financial Reporting Quality and Its Effect on Investment Decisions by Nigerian Deposit Money Banks (Published)

The study investigated the effects of financial reporting quality on investment decision making by Deposit Money Banks in reference to Zenith Bank Plc, Nigeria. Data obtained from the audited annual reports of Zenith Bank Plc that covered period of  2009 – 2016.The study utilised both Descriptive and Ordinary Least Square Regression method with the aid of using  E-view 9 to analyse the data. The findings showed that, there was a significant effect of   variables of (Financial Reporting Quality FRQ measures as profit after tax, cash used in/ from investing and cash and cash equivalent) on investment. The result also shows that, Financial Reporting Quality has significantly influenced on investment of Deposit Money Banks with (R² = 0.98; P <0.05). The study concluded that, higher financial reporting quality increases investment decision by Deposit Money Banks in Nigeria.

Keywords: Cash, Deposit Money Banks, Financial Reporting Quality., Investment, Nigeria, Profit after tax

Effect of Auditor and Internal Control Competence Apparatus for Local Government Quality of Financial Reporting (Published)

The purpose of this study was to measure and demonstrate empirically the effect of Internal Control Auditor and Competence Regional Government Agencies, either partially or jointly on the Quality of Financial Reporting to the Regional Work Units in the Regional Government of Bekasi Regency which consists of agencies, agencies and Regional Inspectorate. The research approach is survey and descriptive research, quantitative and associative causal. Analysis and hypothesis testing using multiple regression analysis first order confirmation Factor Analysis, Factor Analysis second order confirmation and estimated using structural equation modeling (SEM). The findings of this study indicate that either partially or jointly Internal Control Auditor and Regional Government Agencies Competence proved positive and significant effect on the Quality of Financial Reporting. Dimensions or factors Internal Control Auditor dominant Objectivity Internal Auditor; dimension or competence factor Regional Government Agencies dominant skills, while the dimensions or factors Quality of Financial Reporting dominant Reliability.

Keywords: Competence Regional Government Agencies, Financial Reporting Quality., Internal Control Auditor