Open AccessINFLUENCE OF MANAGERIAL ABILITY ON FINANCIAL REPORTING QUALITY: EVIDENCE FROM NIGERIAN LISTED NON-FINANCIAL FIRMS
Author(s) -
Aderemi Olalere Adebayo
Publication year - 2020
Language(s) - English
DOI - 10.32890/pr2020.2.2
Subject(s) - business , finance , shareholder , accounting , financial ratio , sample (material) , quality (philosophy) , audit , accounting management , principal–agent problem , corporate governance , accounting information system , philosophy , chemistry , chromatography , epistemology
Users of accounting information crave of quality financial reporting,by emphasising on the quality of the auditors neglecting the attributeof the managers. This study investigates the influence of managerialabilities on financial reporting in Nigerian listed non-financialsectors. The time series research design was employed by selecting40 non-financial institutions as sample size between 2010 and 2017.Secondary data obtained from the financial report were analysedusing correlation and logistic regression. It was found that managerialability has an inverse relationship on financial reporting quality,which is consistent with the agency theory. The finding implied thatmanagers employ their ability to income smoothing for the benefit ofthe organisation rather than the interest of the shareholders.