Corporate attributes, audit committee and financial reporting quality of listed non-financial firms in Nigeria

The persistent corporate scandals in both developed and developing countries have significantly eroded investors’ trust in the reliability of financial reporting. Nigeria, as a developing country, has witnessed its share of financial reporting mishaps. This study investigates the correlation between the attributes of a company and the financial reporting quality (FRQ) for non-financial firms listed in Nigeria. It specifically emphasizes the influence of the audit committee. The study obtained data from the annual report and accounts of the selected companies. Data analysis was conducted using panel multiple regressions. The findings indicate that moderated board size, moderated liquidity, and moderated growth positively and significantly determined the FRQ. Conversely, moderated company size, moderated board composition, moderated leverage, and moderated profitability had a significant negative impact on the FRQ. We found only moderated profitability and board composition to be non-significant in determining the FRQ. This study significantly contributes to the understanding of how audit committees influence the relationship between firm characteristics and FRQ. The study illustrates how the existence and efficacy of audit committees can modify the influence of firm characteristics on FRQ, emphasizing their significance in improving oversight and the FRQ.