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EFFECT OF FIRM CHARACTERISTICS ON FINANCIAL REPORTING TIMELINESS OF BANKING SECTOR IN NIGERIA

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EFFECT OF FIRM CHARACTERISTICS ON FINANCIAL REPORTING TIMELINESS OF BANKING SECTOR IN NIGERIA

ABSTRACT

This study examined the effect of firm characteristics on financial reporting timeliness of banking firms in Nigeria with the following specific objectives; to determine the influence of firm age on financial reporting timeliness of firms in Nigeria; examine the effect of firm size on financial reporting timeliness of banking firms in Nigeria; ascertain the effect of leverage on financial reporting timeliness of banking firms in Nigeria and evaluate the effect of return on assets on financial reporting timeliness of banking firms in Nigeria. The data spanning a period ten years were gathered from banking firms in Nigeria. The study adopted ex- post facto research design. The methods of data analysis are multiple regression analysis while the T- test statistic was used for the test of hypothesis. The findings revealed that firm characteristics has no significant effect on timeliness of financial reporting by deposit money banks in Nigeria. Test of hypothesis one indicates that P – value = 0.316 > 0.05, hence we did not reject Ho1 but rather concluded that firm age has no significant effect on timeliness of financial reporting of banks in Nigeria. Firm age has no significant effect on timeliness of financial reporting of banks in Nigeria. Test of hypothesis two indicates that p- value = 0.286 > 0.05, hence we accepted Ho2 and concluded that firm size has no significant effect on timeliness of financial reporting of banks in Nigeria. Test of hypothesis three indicates that p-value = 0.628 > 0.05, hence we accepted Ho3 and concluded that leverage has no significant effect on financial reporting timeliness of banking firms in Nigeria and Test of hypothesis four indicates that P -value = 0.040 < 0.05, so we did not accept Ho4 but concluded that ROA has significant effect on the timeliness of reporting by banks in Nigeria. The findings have been able to prove that firm characteristics variables (except Return on Assets) has no significant effect on timeliness of reports of banks in Nigeria. The study therefore recommends that Banks should be able to promote healthy and timely financial report void of ego on age of the organization. The earlier the better for the management and it will make the organization to be more responsible. Management should de- emphasize financial reporting based on the size of banks because it does not add up to anything. It should rather be a factor of financial reporting based on effective and efficient operations. Leverage of most of the sampled banks is very high and indicates that they are relying on debt to finance their operations. Management should do well to improve on their leverage position as a way raising the financial integrity of the banks. The return on assets of banks position can be raised by improving the net income of banks future operating activities. This will lead to timeliness of reports as well as bring higher dividend and similar reports to shareholders.

keywords: Firm Characteristics; Financial Reporting Timeliness; Banking Sector in Nigeria; Firm Size

Authored by 

Edeh, Ijeoma Thelma1, Prof. Ifeoma Mary Okwo2, & Cyprian Okey Okoro PhD3

DOI: 10.5281/zenodo.7828655  |  FULL PDF

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