FIRM ATTRIBUTES AND FINANCIAL REPORTING QUALITY: USING BANKS AS A CASE STUDY

This study examines the effect of firm-specific attributes on the financial reporting quality of banks in Nigeria, focusing on firm size, profitability, board independence, audit committee effectiveness, and leverage. Anchored on Agency Theory, Signaling Theory, and Stakeholder Theory, the study explores how internal characteristics influence managerial incentives, stakeholder communication, and governance mechanisms to ensure transparent and reliable financial reporting. Using panel data from 12 Nigerian deposit money banks over the period 2018 to 2023, the study employed the Fixed Effect Method for estimation alongside Hausman tests, residual cointegration tests, and cross- section dependence tests to analyze the relationships between variables. The findings indicate that firm size and leverage negatively affect financial reporting quality, while profitability, board independence, audit committee effectiveness, and ownership positively influence reporting quality. Hypothesis testing revealed that firm size and leverage significantly impact reporting quality, whereas profitability, board independence, and audit committee effectiveness demonstrate strong positive relationships with high- quality disclosures. These results align with previous empirical studies and reinforce the importance of governance mechanisms and firm characteristics in promoting credible financial reporting. The study recommends strengthening internal governance structures, optimizing board and committee composition, and enhancing managerial accountability to improve financial reporting quality in Nigerian banks. Keywords: financial reporting quality, firm-specific attributes, board independence, audit committee effectiveness, leverage, firm size, profitability, Nigerian banks, Fixed Effect Method