Determinants of Transparency and the Financial Reporting Quality of Nigeria Listed Firms

The issue of transparency in financial reporting has become a vital practice due to financialscandals experienced by the big companies in recent years. As a result of this, the study evaluatesthe determinants of transparency on financial reporting quality of listed firms in Nigeria. The studyemployed ex-post facto research design. The population of the study consists of one hundred andseventy-one (171) companies listed on the floor of Nigerian Exchange Group as at 31st, Dec. 2021.The study covered eleven (11) years period from 2010 to 2020. Eighty (80) companies wereselected from the total population of one hundred and seventy-one (171) listed companies usingpurposive sampling techniques. The study made use of secondary data obtained from the annualreports of the selected companies for the period under study. The research adopted descriptivestatistics to analysis the variables. Panel least square and Generalised Method of Moment (GMM)was used in achieving the objectives. The result of correlation analysis shows that FSIZE has weakpositive correlation with the PROF (r=0.160). while positive correlation was also observedbetween FSIZE and board size with value of 0.416, and Profitability has negative correlation withthe board size with value of -0.138 The result of the analysis on firms’ characteristics on FRQ oflisted firm in Nigeria showed that FSIZE and PROF positively influenced the FRQ of the firms,while rise in leverage leads to decline in the FRQ. of the firms. The study concluded that firmcharacteristics is an important factor that determine the transparency of financial reporting of firmsin Nigeria. The study recommends that firms should adopts the use of the three variables as ameasure of transparency of financial reporting, and this should be enforced by the managementfor strict compliance.