International Research Journal of Accounting, Finance and Banking (IRJAFB)

IMPACT OF OWNERSHIP STRUCTURE ON FINANCIAL REPORTING QUALITY IN NIGERIAN NON-FINANCIAL FIRMS: A STUDY

Authors

  • Yaghoobi A Department of Economics & Banking International Islamic University Chittagong, Bangladesh
  • Khansalar E Department of Economics & Banking International Islamic University Chittagong, Bangladesh

Abstract

This study examines the impact of ownership structure on the quality of financial reporting in Nigerian non-financial firms listed on the Nigerian Stock Exchange. The study utilizes data from 41 firms over the 2011 to 2019 period, using the Generalised Method of Moments (GMM) technique to analyze the data. The study finds that institutional and foreign ownership have a significant negative relationship with earnings management, which improves the quality of financial reporting. However, managerial ownership has an insignificant negative relationship with earnings management. The study recommends that firms should expand institutional and foreign ownership, while ensuring that insider managers' shares remain minimal to enable good reporting practice and avoid diminishing firms' performance. The study highlights the importance of institutional and corporate governance reforms in enhancing financial reporting quality in Nigeria. This is because good financial reporting quality is critical in supporting sound decision-making and achieving robust economic development

Keywords:

Ownership Structure, Institutional Ownership, Foreign Ownership, Managerial Ownership

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Published

2022-07-12

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Section

Articles

How to Cite

A, Y., & E, K. (2022). IMPACT OF OWNERSHIP STRUCTURE ON FINANCIAL REPORTING QUALITY IN NIGERIAN NON-FINANCIAL FIRMS: A STUDY . International Research Journal of Accounting, Finance and Banking (IRJAFB), 13(7), 12–27. Retrieved from https://zapjournals.com/Journals/index.php/irjafb/article/view/439

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