Ownership structure and financial reporting quality of listed non-financial firms in Nigerian: The moderating role of audit committee
Abstract
The aim of this study is to evaluate the moderating role of audit committee on the relationship between
ownership structure and financial reporting quality of listed non-financial firms in Nigeria. The study
used annual reports from 41 listed non-financial firms in Nigeria between 2010 to 2021 period. The
study used causal research design approach. The analysis was done using descriptive statistics and
multiple regression technique using Generalised Method of Moment (GMM). The findings of the study
show that there is significant relationship between ownership structure and financial reporting quality
and audit committee can effectively moderate their relationship. The study therefore, rejects all the null
hypotheses formulated. The implications of the study are that regulators and policy makers, may
encourage more shareholders representation in audit committee of listed companies and mandate
financial expertise to all audit committee members. The study concludes that presence of institutional,
managerial and foreign ownerships as well as sound audit committee are important for improving
firms' financial reporting quality. The study therefore, recommends that in order to enhance the
reporting quality, management of listed non-financial firms in Nigeria should ensure that they have
effective and functional audit committee. The ownership structure should also be strengthened in order
to assist in improving financial reporting quality and also improve relevance and reliability of annual
reports and make it easier for the stakeholders to make appropriate decisions relevant to their needs.