Effect of Corporate Governance Compositions on Financial Reporting Timeliness in Nigerian Deposit Money Banks

Source:
By:Author(s)

DOI: https://doi.org/10.30564/mmpp.v4i3.4983

Abstract:

This study ascertained the effect of corporate governance compositions on timeliness of financial reporting in deposit money banks in Nigeria. Ex Post Facto research design was employed for this study. Purposive sampling was used to select eight (8) deposit money banks in Nigeria with international authorization. Data were extracted from annual reports and accounts of the sampled banks and analyzed with regression analysis. The results show that board size has a positive and significant effect on financial reporting timeliness deposit money banks in Nigeria, while audit committee independence has a positive but insignificant effect on financial reporting timeliness of deposit money banks in Nigeria. Therefore, on the basis of the findings and conclusions of the study, the study recommends among other things that the number of banks board of directors should play a vital role in how well it can oversee daily operations of the institution and monitor management.

References:

[1] Tri, G., 2011. Corporate governance structure and timeliness of financial report. Manajemen & Bisnis. 10(1). [2] Hart, O., 1995. Corporate Governance: Some Theory and Implications. Economic Journal. 105, 678-689. [3] Prowsen, S., 1998. Corporate Governance, Emerging Issues and Lessons from East Asia. http://www.worldbank.org [4] Knechel, W.R., Payne, J.L., 2001. Additional evidence on Audit Report Lag. Auditing: A Journal of Practice and Theory. 20, 137-146. [5] Almosa, A.S., Alabbas, M., 2007. Audit Delay: Evience from Listed Joint Stock Companies in Saudi Arabia. Kig Khalid University, Abha, Saudi Arabia. Available from internet at www.kku.sa/conference/SSEFP/presentation [6] Yim, A., 2010. Fraud Detection and Financial Reporting and Audit Delay. https://mpra.ub.uni-muenchen.de/27857/ [7] Aktas, R., Kargin, M., 2011. Timeliness of Reporting and the Quality of Financial Information. International Research Journal of Finance and Economics. 63, 71-77. [8] Afify, H.A.E., 2009. Determinants of audit report lag: Does implementing corporate governance have any impact? Empirical evidence from Egypt. Journal of Applied Accounting Research. 10(1), 56-86. [9] Lambert, T.A., Brazel, J.F., Jones, K.L., 2008. Unintended Consequences of Accelerated Filings: Do Changes in Audit Delay Lead to Changes in Earnings Quality? SSRN eLibrary. [10] Aljifri, K., Khasharmeh, H., 2010. The Timeliness of Annual reports in Bahrain and United Arab Emirates: An Empirical Comparative Study. The International Journal of Business and Finance Research. 4(1), 51-71. [11] Dardor, Z.O., 2009. Publishing delay and the usefulness of annual reports in Libya (Doctoral thesis, Bournemouth University). Retrieved from https://eprints.bournemouth.ac.uk/16480/1/PUBLISHING_DELAY_AND_THE_USEFULNESS_OF_ANNUAL_REPORTS_IN_LIBYA_..pdf [12] Ibadin, I.M., Izedonmi, F., Ibadin, P.O., 2012. The association between selected corporate governance attributes, company attributes and timeliness of financial reporting in Nigeria. Research Journal of Finance and Accounting. 3(9), 137-144. [13] Appah, E., Emeh, Y., 2013. Corporate Governance Structure and Timeliness of Financial Reports of Quoted Firms in Nigeria. European Journal of Business and Management. 5(32). https://www.iiste.org/Journals/index.php/EJBM/article/view/9555 [14] Shukeri, S.N., Islam, A., 2012. The determinants of audit timeliness: Evidence from Malaysia. Journal of Applied Sciences Research. 8(1), 3314-3322. [15] Aigienohuwa, O.O., Ezejiofor, R.A., 2021. Leverage and timeliness of financial reports in Nigerian quoted companies. International Journal of Advanced Academic Research. 7(10). https://www.ijaar.org/articles/v7n10/sms/Leverage%20and%20Timeliness%20of%20Financial%20Reports%20in%20Nigerian%20Quoted%20Companies.pdf [16] Raweh, N.A.M., Kamardin, H., Malek, M.M., 2019. Audit committee characteristics and audit report lag: evidence from Oman. International Journal of Accounting and Financial Reporting. 9(1), 153-169. [17] Oraka, A.O., Okoye, J.A., Ezejiofor, R.A., 2019. Determinants of financial reporting timeliness: an empirical study of Nigerian deposit money banks. International Journal of Advanced Academic Research. 5(9). [18] Omar, A., Ahmed, A.M.A., 2016. The factors affecting timeliness of corporate financial reporting: empirical evidence from the Palestinian and Amman stock exchange. International Journal of Management Sciences and Business Research. 5(10). [19] Efobi, U., Okougbo, P., 2015. Timeliness of financial reporting in Nigeria. https://www.researchgate.net/publication/280719297 [20] Adeoye, A.A., 2015. Examining corporate governance practices in Nigerian and South-African firms. European Journal of Accounting, Auditing and Finance Research. 3(1), 10-29. [21] Oghojafora, E.A., Olayemia, O., Okonjia, P.S., et al., 2010. Poor corporate governance and its consequences on the Nigerian banking sector. Serbian Journal of Management. 5(2). [22] Liu, H., Omar, 2013. Corporate governance in Nigeria: The status quo corporate governance. International Review. 73-193. [23] Shuker, A., Md. Aminul, 2012. Investigate relationship between corporate governance and dividend policy. Interdisciplinary Journal of Contemporary Research in Business. 5(4), 334-340. [24] Cadbury, A., 1992. Corporate governance and chairmanship. A personal view. Oxford University Press on Demand Companies and Allied Matters Act (CAMA 2004). Lagos: Federal Government printer. [25] Okaiwele, I.M., 2018. The association between selected corporate governance attributes, company attributes and timeliness of financial reporting in Nigeria. Research Journal of Finance and Accounting. 3(9), 137-144. [26] Baxter, P., Cotter, J., 2009. Audit committees and earnings quality. Accounting and Finance. 49, 267- 290. DOI: https://doi.org/101111/J.1467-629X.2008.00290.X [27] Mohamad-Nor, M.N., Shafie, R., Wan-Hussin, W.N., 2010. Corporate Governance and Audit Report Lag in Malaysia. Asian Academy of Management Journal of Accounting and Finance. 6(2), 51-84. [28] Hashim, U., Abdul Rahman, R.B., 2011. Audit report lag and the effectiveness of audit committee among Malaysian listed companies. International Bulletin of Business Administration. 10, 50-71. [29] Ofo, N., 2010. An appraisal of audit committees of public companies in Nigeria. Social Science Research Network. DOI: https://doi.org/10.2139/ssrn.1641603 [30] McGee, R., Yuan, X., 2011. Corporate governance and the timeliness of financial reporting: A comparative study of the people’s republic of China, the USA and the European Union. Journal of Asia Business Studies. 6(1). [31] Abdelsalam, O., El-Masry, A., 2008. The impact of board independence and ownership structure on the timeliness of corporate internet reporting of Irish-listed companies. Managerial Finance. 34(12), 907-918. [32] Dye, A., 2018. Corporate governance and agency conflicts. Journal of Accounting Research. 46(5), 1143-1181. [33] Apadore, K., Noor, M., 2013. Determinants of audit report lag and corporate Governance in Malaysia. International Journal of Business and Management. 8(15), 151-163. [34] Nauman, Z., 2013. Effects of duality, board size and board composition on corporate governance disclosure in Pakistan. International SAMANM Journal of Finance and Accounting. 1(3). [35] Laksmana, I., 2008. Corporate board governance and voluntary disclosure of executive compensation practice. Contemporary Accounting Research. 25(4), 47-82. [36] Stefanescu, C.A., 2013. Accounting for good corporate governance. Journal of Administration and Governance. 3(2). [37] Turel, A.G., 2010. Timeliness of financial reporting in emerging capital markets: Evidence from Turkey. European Financial and Accounting Journal. 5(1), 113-133. [38] DeZoort, F.T., Salterio, S.E., 2001. The effects of corporate governance experience and financial-reporting and audit knowledge on audit committee members’ judgments. Auditing: A Journal of Practice & Theory. 20(2), 31-47. [39] Oladipupo, A.O., Ilaboya, O.J., 2013. Late culture of corporate financial reporting in Nigeria. African Journal of Social Sciences. 3(4), 163-170. [40] Iyoha, F.O., 2012. Company attributes and timeliness of financial reporting in Nigeria. Business Intelligence Journal. 5(1), 41-49. [41] Fatimehin, K., Ezejiofor, R.A., Olaniyi, A.R., 2022. Staff turnover and financial returns of Nigerian banks. International Journal of Research Publication and Reviews. 13(6), 588-596. [42] Oyinlola, F.O., Folajin, O.O., Olowe, F.T., 2020.Corporate governance and the timeliness of financial reporting: a comparative study of developing and developed economies. Global Scientific Journal. 8(9). [43] Modugu, P., Eragbhe, E., Ikhatua, O.J., 2012. Determinants of audit delay in Nigerian companies: Empirical evidence. Research Journal of Finance and Accounting. 3(6), 46-54. [44] Clatworthy, M.A., Peel, M.J., 2016. The timeliness of UK private company financial reporting: Regulatory and economic influences. The British Accounting Review. 48(3). DOI: https://doi.org/10.1016/j.bar.2016.05.001