Effect of Board Attributes on Financial Reporting Quality of Quoted Consumer Goods Companies in Nigeria

Abstract

This study examines the impact of board composition on the degree of financial reporting quality of consumer goods companies listed on the Nigerian Stock Exchange between 2016 and 2021. Samples of thirteen businesses were selected after using two filters. The study employed an ex post facto methodology, and secondary data were extracted from the population's annual reports and accounts. Regression utilising the Ordinary Least Square Model was used to test the hypotheses. An increase in the number of specialists on the board will help consumer goods companies' financial reporting because it was discovered that board expertise is essential and positively correlated with financial reporting quality.On the other hand, it was discovered that board diversity and independence were unimportant and irrelevant to the accuracy of financial reporting. The study concludes that board attributes, particularly board expertise, influence the quality of financial reporting. Accordingly, listed consumer goods firms should prioritise board expertise by increasing the number of non-executive members on the board who are knowledgeable about accounting, have professional certifications, and have a wealth of work experience to reduce management manipulations and halt fraud in the company.