Firm Characteristics and Financial Reporting Quality among Listed Non-Financial Companies in Nigeria

The series of corporate failures and reporting irregularities, despite the full adoption of International Financial Reporting Standards, has raised concerns about factors affecting financial reporting quality in Nigeria This study investigated the relationship between firm attributes and financial reporting quality among 85 listed non-financial companies in Nigeria over the period 2016–2025. Financial reporting quality was examined through an income-smoothing index, with auditor type, sustainability disclosure practices and board financial expertise as the principal explanatory variables, with firm size as a control. The reported robust regression results indicated positive and statistically significant associations for auditor type and board financial expertise. Under the interpretation of the index adopted in the manuscript, these findings are consistent with lower income smoothing among firms with the relevant audit and board characteristics. In contrast, sustainability disclosure practices showed a positive but statistically non-significant association, providing insufficient evidence of a relationship within the estimated model. Firm size also demonstrated a positive and significant coefficient. External audit arrangements and board-level financial competence therefore warrant attention. Accordingly, listed companies should apply appropriate professional criteria when selecting external auditors and consider the financial expertise available within their boards. Sustainability disclosure practices may also be integrated with financial reporting processes, although their statistical association with income smoothing was not established in this study. These findings should be interpreted as associations rather than causal effects.