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
INTERNAL CONTROL AS AN EFFECTIVE MANAGEMENT TOOL IN THE BANKING INDUSTRY
ABSTRACT
This project was carried out with the sole aim of studying an evaluating the internal control system in a banking in...
SUSTAINABILITY REPORTING FRAMEWORKS AND THEIR IMPACT ON FINANCIAL REPORTING
Abstract:
This study examines the impact of sustainability reporting frameworks on financial reporting...
THE ROLE OF COMMERCIAL BANKS IN ACHIEVING STABILITY IN FOREIGN EXCHANGE
Abstract
This research project work was undertaken with a purpose of determining and evaluation of the effect of the Ro...
PHARMACOGNOSTIC AND ANTIOXIDANT STUDIES OF THE PSEUDOBULBS OF EULOPHIA GUINEENSIS LINDL (ORCHIDACEAE)
ABSTRACT
Eulophia species are cultivated worldwide; it is one of the largest orchid‘s genera in Africa. They are believed to cure m...
ASSESSMENT OF ACCOUNTING PERSONNEL IN SELECTED SMALL AND MEDIUM ENTERPRISES
Abstract
The objective of this research study is to assess accounting personnel in selected small and medium enterprises...
Online Clearance System
ABSTRACT
The online clearance system is an internet-based study initiative that will help facilitate the queuing system in the clearance...
APPLICATION OF GEOINFORMATICS TECHNIQUES IN CONTROLLING FLOODING IN VULNERABLE ROADS AND BUILDINGS IN NIGERIA
Abstract
The reoccurring flooding in some parts of Rivers State had been a major research concern. Seas...
PERFORMANCE EVALUATION OF MINI SPRINKLER IRRIGATION SYSTEM: COMPARISON OF THE PLASTIC AND IRON MADE SPRINKLER SYSTEM
ABSTRACT
This study is a study to evaluate and compare the hydraulic performance of plastic and iron mini sprinkler system using 8mm and...
PERCEPTIONS OF STAKEHOLDERS ON PREVAILING ORGANIZATIONAL CLIMATES IN COLLEGES OF EDUCATION IN NORTH-WEST ZONE OF NIGERIA
ABSTRACT
This study, „Perceptions of Stakeholders on Prevailing Organizational Climates in Colleges of Education in North-West Zone...
EFFECT OF TWITTER BAN ON FOREIGN INVESTORS IN NIGERIA
ABSTRACT
This study examines effect of twitter ban on foreign investors in Nigeria. using Lagos State as cas...
