BOARD ATTRIBUTES, OWNERSHIP STRUCTURE AND REPORTING QUALITY IN A POST-IFRS REGIME: A DIFFERENCE-INDIFFERENCE REGRESSION TECHNIQUE
- Project Research
- 1-5 Chapters
- Abstract : Available
- Table of Content: Available
- Reference Style: APA
- Recommended for : Student Researchers
- NGN 3000
ABSTRACT
The study examined board attributes, ownership structure and reporting quality in a post-IFRS regime. The difficulties to control for confounding factors on accounting quality in IFRS reporting regime and the sensitivity of different measures of reporting quality motivated this study. The study employed a longitudinal research design while the population comprised the entire thirteen (13) Deposit Money Banks (DMBs) listed on the Nigerian Stock Exchange (NSE) as at 31st December, 2019. The study used a fifteen-year time frame (2005 to 2019) to enable the researcher to split the samples into two groups: pre-IFRS regime samples, otherwise called the control group (2005- 2011); and post-IFRS regime samples, otherwise called the treatment group (2013 – 2019). Due to the finite and exhaustive number of the population size, the study took a census of the entire thirteen (13) DMBs as its sample size. The secondary data were sourced from the audited annual reports of DMBs for the period 2005-2019 financial year. Using the Difference-In-Difference (DD) estimation, result shows that generally, IFRS adoption improves reporting quality using QUA-FRQ (0.0550, p=0.000). For DACC, the result revealed significant impact (0.3509, p=0.000), however the positive coefficient is at variance with theoretical expectation, hence reporting quality is not enhanced. For VREL, it did not improve reporting quality using VREL (8.5416, p=0.3407). For the specific variables, in the post IFRS regime, based on the three measures (qualitative characteristics [QUA-FRQ], discretionary accruals [DACC] and value relevance [VREL] measures) of financial reporting quality used in this study, board size was found to have an insignificant impact across all measures (QUA-FRQ= (-0.00115, p=0.5851; DACC= (-0.006, p=0.7260; VREL= (-0.4814, p=0.7260), board independence was found to have a significant impact across all measures (QUA-FRQ= 0.1067, p=0.033; DACC= 1.4173, p=0.006; VREL= (- 26.338, p=0.000), board financial expertise was found to have a significant impact for at least one; QUA-FRQ (0.0748, p=0.0034). Furthermore, institutional ownership was found to have a significant impact for at least one; VREL (-0.17926, p=0.000), managerial ownership was found to have an insignificant impact across all measures (QUA-FRQ=0.0005, p=0.2696; DACC= 0.0018, p=0.7849; VREL= 0.0129, p=0.6857), foreign ownership was found to have an insignificant impact across all measures (QUA-FRQ=0.0009, p=0.0153; DACC= 0.008, p=0.1715; VREL= 0.0852, p=0.0401) and block ownership was found to have a significant impact across QUA-FRQ (-0.0006, p=0.0233) and VREL (0.1485, p=0.0003) measures. The study concluded that IFRS adoption improved reporting quality although the impact was not without variation across the reporting quality proxy used and the specific corporate governance variables. In the light of the findings, the following recommendations were made. First, stakeholders should ensure that the information on annual reports is critically in line with the IASB qualitative characteristics of financial information. Second, there is the need for the board size of Nigerian banks to be looked at more critically. Though there is yet no consensus regarding what constitutes an optimal board size, there is the need to ensure that the present board size is efficient in improving corporate monitoring and then financial reporting quality. Third, a substantial proportion of corporate board should be nonexecutive directors with integrity and a reputation for transparency. In addition, such individuals should be involved in sensitive responsibilities that relate to improving reporting credibility. Fourth, there is the need for more financial literacy board members and also the process of financial skill development, a continuous one and, as such, with advances in the techniques of managerial manipulation, board members needed to update and upgrade their financial literacy levels especially incorporating forensic techniques and machine learning abilities which are the new approaches to fraud detection. Fifth, there is the need for more institutional presence to be actively involved in ensuring corporate transparency.
Related Project Materials
THE EXTENT OF HOME ECONOMICS LITERACY AMONG SECONDARY SCHOOL SCIENCE TEACHERS
Abstract
Due to the necessity of everybody to become home economics literate in our society, have made us to carry out t...
GLOBALIZATION AND ECONOMIC GROWTH IN NIGERIA
Abstract
The research work seeks to examine the impact of globalization on economic growth through fore...
SCREENING OF SOME COMMON WEEDS FOR NEMATICIDAL ACTIVITIES AGAINST THE ROOT-KNOT NEMATODE INFESTATION ON TOMATO (LYCOPERSICUM ESCULENTUM L.) IN PLATEAU STATE, NIGERIA.
ABSTRACT
The screening of some common weeds for nematicidal activities on Meloidogyne incognita infestation on tomato (Lycopersicum escul...
THE IMPACT OF INTERNAL AUDIT ON FRAUD DETECTION AND PREVENTION
ABSTRACT
The purpose of this study is to examine the impact of Internal Audit on fraud detection and prevention with Pow...
THE PERCEIVED EFFECTIVENESS OF PUNISHMENT ADMINISTERED ON STUDENTS BY SECONDARY SCHOOL TEACHERS.
BACKGROUND OF THE STUDY
In Nigeria today, acts of delinquency and violence among secondary school students have become a...
THE EFFECT OF COVID 19 PANDEMIC ON HOTEL PATRONAGE IN SOME SELECTED HOTELS IN ETSAKO WEST LOCAL GOVERNMENT AREA
ABSTRACT
This study was carried out to examine the effect of covid-19 pandemic on hotel patronage. The study aimed to as...
THE EFFECTS OF UNETHICAL PRACTICES IN ADVERTISING
Abstract
Our country, Nigeria is more of a capitalist state and everyone in his kind of business, wants...
EVALUATING THE ROLE OF QUANTITY SURVEYORS IN SUSTAINABLE INFRASTRUCTURE DEVELOPMENTS
ABSTRACT
The world over, a vast number of developing countries are trying to achieve sustainable economic growth...
FORENSIC ACCOUNTING AS A TOOL FOR FRAUD DETECTION AND PREVENTION
ABSTRACT
This study was intended to evaluate the extent to which forensic accounting can be used as a tool in fraud dete...
RATTLE TREE (ALBIZIA LEBBECK) EFFECTS ON SOIL PROPERTIES AND PRODUCTIVITY OF IRISH POTATO (SOLANUM TUBEROSUM) ON THE JOS PLATEAU, NIGERIA
ABSTRACT
This study was carried out with the aim of assessing the rattle tree (Albizia lebbeck) effects on soil properties and Irish pota...
