Abstract
The main objective is to determine the influence of corporate governance principles on the quality of financial reports in Nigeria.
The study adopted longitudinal research design. While, the populations of this study consist of all the banks listed on the Nigeria stock exchange (NSE) as at 31st December, 2018. Based on this, the total number of banks listed in the Nigeria stock exchange (NSE) as at 31st December, 2018 is fourteen (14). Furthermore, the data for the study was gathered from the annual reports and financial statement of banks. The methods of data analysis that was employed in this study are descriptive statistics, correlation analysis and ordinary least square regression models.
From the regression results of the study it was found that board independence and audit committee was found to have a positive impact on financial reporting quality. This implies that the independent director has the ability to monitor and control the excesses of the executive directors, and audit committee provides the board of directors with necessary financial advice and recommendation so as to ensure that the respective firms complies with relevant regulations and some ethical practices, and also, to ensure that the financial statements have been prepared correctly and presented on time. While, foreign board executive and board size was found to have a negative impact on financial reporting quality. This implies that firms with large board size tend to be slow in management decisions making and this can be an obstacle to change in the management processes. Therefore, it is recommended that in an organization one of the most vital needs is quick dissemination of information this can only be achieved when the size of the board is not too large so as to facilitate the quick spread of information around the company. It is pertinent to note that organization should ensure that the board is formed in way that it facilitate the free movement of information so as to avoid information asymmetry as well as spread of rumor about the well been of the organization. Also, the board setting of an organization should include external board members who are dependent of the organization.
