Determinants of Financial Reporting Quality in the Nigerian Banking Sector

This study empirically examined the determinants of financial reporting quality of listed deposit money banks in Nigeria. The study employs secondary sources of data from the financial statements for the period of six years (2015– 2020). Random Effects Regression technique of data analysis was used in the analysis of data. The study found a significant positive relationship between firm size, firm liquidity, board size and board diversity and financial reporting quality, while an insignificant relationship was found between firm leverage during the period under review. In view of the foregoing empirical findings, it is recommended that: despite the structural and administrative complexities that are associated with larger companies, managers should deploy a means of reporting quality financial statement in order to boost the investors’ confidence in the organization; managers of deposit money banks in Nigeria should strive for improved liquidity level if they are to enjoy quality financial reporting; banks should maintain adequate and effective corporate governance practices (board size and board diversity); and in relation to firm leverage, banks should ensure an optimum leverage level is maintained as such would continuously minimise the adverse effect of leverage on financial reporting quality.