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Corporate Governance Mechanisms on Financial Reporting Quality of Listed Consumer Goods Companies in Nigeria

Author

Listed:
  • Nguavese Florence Ihongu

    (Accounting Department, Benue State University, Makurdi)

  • Luper Iorpev

    (Accounting Department, Benue State University, Makurd)

  • Titus Tyolumun Gbulum

    (Accounting Department, Benue State University, Makurdi)

  • Aondoakaa Kwaghfan

    (Accounting Department, Benue State University, Makurdi)

Abstract

This study examined the effect of corporate governance mechanisms on financial reporting quality of listed consumer goods companies in Nigeria. Specifically, the study examined the effect board size, board independence, audit committee financial expertise, audit committee meetings and risk management committee on financial reporting quality proxied by earnings management measured using discretionary accruals. Ex-po facto research design was employed as data were extracted from published audited annual financial reports of 15 sampled listed consumer goods companies on the Nigerian exchange group for a period of 6 years from 2018 to 2023. The data collected were analyzed. Descriptive statistics, correlation and panel regression techniques was employed to explain the relationship between variables. Findings revealed that; board size, board independence and audit committee meetings revealed a negative relationship with discretionary accruals thereby reducing earnings management and increasing financial reporting quality of listed consumer goods companies in Nigeria. However, risk management committee showed an insignificant negative relationship with earnings management. Audit committee financial expertise has an insignificant but a positive relationship with earnings management, of listed consumer goods companies in Nigeria. The study recommended amongst others that consumer goods companies should firms to prioritize the composition and functionality of these governance structures to enhance reporting quality and mitigate earnings manipulation so as to improve financial reporting quality.

Suggested Citation

  • Nguavese Florence Ihongu & Luper Iorpev & Titus Tyolumun Gbulum & Aondoakaa Kwaghfan, 2025. "Corporate Governance Mechanisms on Financial Reporting Quality of Listed Consumer Goods Companies in Nigeria," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 9(7), pages 6209-6231, July.
    • Handle: RePEc:bcp:journl:v:9:y:2025:issue-7:p:6209-6231
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    References listed on IDEAS

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