IDEAS home Printed from https://ideas.repec.org/a/ssi/jouird/v3y2021i1p136-146.html
   My bibliography  Save this article

Corporate governance mechanisms and financial reporting quality of commercial banks in Nigeria

Author

Listed:
  • Sunday Oseiweh Ogbeide

    (Elizade University, Nigeria)

  • Henry Usunobun Ogiugo

    (Ajayi Crowther University, Nigeria)

  • Isaac Olufemi Adesuyi

    (Elizade University, Nigeria)

Abstract

This study examined corporate governance mechanisms and financial reporting quality of listed commercial banks in Nigeria. The population of the study consists of all listed commercial banks on the stock exchange as at 31st December 2018. A sample of nine (9) listed commercial banks were selected and data were collected over the period 2008 to 2018. Descriptive statistics and panel Least Square regression were used for the data analysis. The findings reveal that board size and audit committee were negative and exerted significant impact on financial reporting quality of listed commercial banks while board independence is significant and exerts a positive influence on financial reporting quality of listed commercial banks in Nigeria. Female directorship does not have a significant relationship with financial reporting quality of listed commercial banks in Nigeria. The study therefore recommends that steps should be taken by regulators to stipulate stiffer penalty on firms engaging in earnings smoothing capable of undermining corporate governance ethics and framework for banks in Nigeria as this will serve as deterrent to others and further entrench sanity.

Suggested Citation

  • Sunday Oseiweh Ogbeide & Henry Usunobun Ogiugo & Isaac Olufemi Adesuyi, 2021. "Corporate governance mechanisms and financial reporting quality of commercial banks in Nigeria," Insights into Regional Development, VsI Entrepreneurship and Sustainability Center, vol. 3(1), pages 136-146, March.
    • Handle: RePEc:ssi:jouird:v:3:y:2021:i:1:p:136-146
    DOI: 10.9770/ird.2021.3.1(8)
    as

    Download full text from publisher

    File URL: https://jssidoi.org/ird/uploads/articles/9/Ogbeide_Corporate_governance_mechanisms_and_financial_reporting_quality_of_commercial_banks_in_Nigeria.pdf
    Download Restriction: no
    File URL: https://jssidoi.org/ird/article/64
    Download Restriction: no
    File URL: https://libkey.io/10.9770/ird.2021.3.1(8)?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Michael C. Jensen, 2010. "The Modern Industrial Revolution, Exit, and the Failure of Internal Control Systems," Journal of Applied Corporate Finance, Morgan Stanley, vol. 22(1), pages 43-58, January.
    2. Sarapee Chanatup & Somnuk Aujirapongpan & Supit Ritkaew, 2020. "The influence of corporate governance mechanism on the integrated financial reporting and investment risk of Thai listed companies," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 7(4), pages 2818-2831, June.
    3. Jerry Sun & Guoping Liu & George Lan, 2011. "Does Female Directorship on Independent Audit Committees Constrain Earnings Management?," Journal of Business Ethics, Springer, vol. 99(3), pages 369-382, March.
    4. Lela Nurlaela Wati & Ramdany & Momon, 2020. "Does corporate governance affect financial reporting quality of politically connected firms?," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 7(3), pages 2126-2143, March.
    5. Peter Ehizokhale Okpamen & Sunday Oseiweh Ogbeide, 2020. "Board director reputation capital and financial performance of listed firms in Nigeria," Insights into Regional Development, VsI Entrepreneurship and Sustainability Center, vol. 2(4), pages 750-758, December.
    6. Yermack, David, 1996. "Higher market valuation of companies with a small board of directors," Journal of Financial Economics, Elsevier, vol. 40(2), pages 185-211, February.
    7. Jacqueline Christensen & Pamela Kent & Jenny Stewart, 2010. "Corporate Governance and Company Performance in Australia," Australian Accounting Review, CPA Australia, vol. 20(4), pages 372-386, December.
    8. Peter Ehizokhale Okpamen & Sunday Oseiweh Ogbeide, 2020. "Board director reputation capital and financial performance of listed firms in Nigeria," Insights into Regional Development, VsI Entrepreneurship and Sustainability Center, vol. 2(4), pages 765-773, December.
    9. Alina Kulustayeva & Aigul Jondelbayeva & Azhar Nurmagambetova & Aliya Dossayeva & Aliya Bikteubayeva, 2020. "Financial data reporting analysis of the factors influencing on profitability for insurance companies," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 7(3), pages 2394-2406, March.
    10. Adams, Renée B. & Ferreira, Daniel, 2009. "Women in the boardroom and their impact on governance and performance," Journal of Financial Economics, Elsevier, vol. 94(2), pages 291-309, November.
    11. Fama, Eugene F & Jensen, Michael C, 1983. "Separation of Ownership and Control," Journal of Law and Economics, University of Chicago Press, vol. 26(2), pages 301-325, June.
    12. Andrea Melis & Silvia Carta, 2010. "Does accounting regulation enhance corporate governance? Evidence from the disclosure of share-based remuneration," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 14(4), pages 435-446, November.
    13. Akshita Arora & Chandan Sharma, 2015. "Impact of Firm Performance on Board Characteristics: Empirical Evidence from India," IIM Kozhikode Society & Management Review, , vol. 4(1), pages 53-70, January.
    14. David A. Carter & Betty J. Simkins & W. Gary Simpson, 2003. "Corporate Governance, Board Diversity, and Firm Value," The Financial Review, Eastern Finance Association, vol. 38(1), pages 33-53, February.
    15. Ryan Davidson & Jenny Goodwin‐Stewart & Pamela Kent, 2005. "Internal governance structures and earnings management," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 45(2), pages 241-267, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Nováčková Daniela & Peráček Tomáš, 2021. "The Common European Investment Policy and Its Perspectives in the Context of the Achmea Case Law," TalTech Journal of European Studies, Sciendo, vol. 11(1), pages 153-169, May.
    2. Jana BADRAN & Maria CHAMOUN, 2024. "Corporate Governance and Banking Stability in the MENA Region," International Business Research, Canadian Center of Science and Education, vol. 17(2), pages 1-31, April.
    3. Bayar Gardi & Mehmet Aga & Nabaz Nawzad Abdullah, 2023. "Corporate Governance and Financial Reporting Quality: The Mediation Role of IFRS," Sustainability, MDPI, vol. 15(13), pages 1-19, June.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Sunday Oseiweh Ogbeide & Henry Usunobun Ogiugo & Isaac Olufemi Adesuyi, 2021. "Corporate governance mechanisms and financial reporting quality of commercial banks in Nigeria," Post-Print hal-03583879, HAL.
    2. Martin Kyere & Marcel Ausloos, 2021. "Corporate governance and firms financial performance in the United Kingdom," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 26(2), pages 1871-1885, April.
    3. Tleubayev, Alisher & Bobojonov, Ihtiyor & Gagalyuk, Taras & Glauben, Thomas, 2020. "Board gender diversity and firm performance: Evidence from the Russian agri-food industry," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 23(1), pages 35-53.
    4. Nguyen, Tuan & Nguyen, An & Nguyen, Mau & Truong, Thuyen, 2021. "Is national governance quality a key moderator of the boardroom gender diversity–firm performance relationship? International evidence from a multi-hierarchical analysis," International Review of Economics & Finance, Elsevier, vol. 73(C), pages 370-390.
    5. Stephen Gray & John Nowland, 2017. "The diversity of expertise on corporate boards in Australia," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 57(2), pages 429-463, June.
    6. Pascal Nguyen & Nahid Rahman & Ruoyun Zhao, 2018. "CEO characteristics and firm valuation: a quantile regression analysis," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 22(1), pages 133-151, March.
    7. Gregor Dorfleitner & Christian Kreuzer, 2024. "Board Responsibility for Irresponsibility: The Link Between Board Structure and Corporate Scandals," Schmalenbach Journal of Business Research, Springer, vol. 76(3), pages 433-461, September.
    8. Le, Quyen & Vafaei, Alireza & Ahmed, Kamran & Kutubi, Shawgat, 2022. "Independent directors' reputation incentives and firm performance – an Australian perspective," Pacific-Basin Finance Journal, Elsevier, vol. 72(C).
    9. Jong-Min Kim & Chanho Cho & Chulhee Jun & Won Yong Kim, 2020. "The Changing Dynamics of Board Independence: A Copula Based Quantile Regression Approach," JRFM, MDPI, vol. 13(11), pages 1-21, October.
    10. Pathan, Shams & Faff, Robert, 2013. "Does board structure in banks really affect their performance?," Journal of Banking & Finance, Elsevier, vol. 37(5), pages 1573-1589.
    11. Martin Bugeja & Zoltan Matolcsy & Helen Spiropoulos, 2016. "The Association Between Gender-Diverse Compensation Committees and CEO Compensation," Journal of Business Ethics, Springer, vol. 139(2), pages 375-390, December.
    12. Hussein Abedi Shamsabadi & Byung-Seong Min & Richard Chung, 2016. "Corporate governance and dividend strategy: lessons from Australia," International Journal of Managerial Finance, Emerald Group Publishing Limited, vol. 12(5), pages 583-610, October.
    13. Ahmed, Ammad & Ali, Searat, 2017. "Boardroom gender diversity and stock liquidity: Evidence from Australia," Journal of Contemporary Accounting and Economics, Elsevier, vol. 13(2), pages 148-165.
    14. Chenglong Zheng & Roy Kouwenberg, 2019. "A Bibliometric Review of Global Research on Corporate Governance and Board Attributes," Sustainability, MDPI, vol. 11(12), pages 1-25, June.
    15. Belaounia, Samia & Tao, Ran & Zhao, Hong, 2020. "Gender equality's impact on female directors’ efficacy: A multi-country study," International Business Review, Elsevier, vol. 29(5).
    16. Hamid Mohsin Jadah & Logasvathi A/P Murugiah & Azira Binti Abdul Adzis, 2016. "The Effect of Board Characteristics on Iraqi Banks Performance," International Journal of Academic Research in Accounting, Finance and Management Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Accounting, Finance and Management Sciences, vol. 6(4), pages 205-214, October.
    17. Catarina Fernandes & Jorge Farinha & Francisco Vitorino Martins & Cesario Mateus, 2017. "Supervisory boards, financial crisis and bank performance: do board characteristics matter?," Journal of Banking Regulation, Palgrave Macmillan, vol. 18(4), pages 310-337, November.
    18. Franco Ernesto Rubino & Paolo Tenuta & Domenico Rocco Cambrea, 2017. "Board characteristics effects on performance in family and non-family business: a multi-theoretical approach," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 21(3), pages 623-658, September.
    19. Ujkan Bajra & Simon Cadez, 2018. "The Impact of Corporate Governance Quality on Earnings Management: Evidence from European Companies Cross†listed in the US," Australian Accounting Review, CPA Australia, vol. 28(2), pages 152-166, June.
    20. Gurdgiev, Constantin & Ni, Qiuxin, 2023. "Board diversity: Moderating effects of CEO overconfidence on firm financing decisions," Journal of Behavioral and Experimental Finance, Elsevier, vol. 37(C).

    More about this item

    Keywords

    board size; board independence; female directorship; audit committee size; financial reporting quality;
    All these keywords.

    JEL classification:

    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting
    • M42 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Auditing

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ssi:jouird:v:3:y:2021:i:1:p:136-146. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Manuela Tvaronaviciene (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.