CORPORATE GOVERNANCE CHARACTERISTICS AND FINANCIAL REPORTING QUALITY OF LISTED INDUSTRIAL GOODS COMPANIES IN NIGERIA. FIRM SIZE AS A MODERATOR

Abstract

This study aims to explore how firms influence the relationship between corporate governance characteristics and the quality of financial reporting in industrial goods companies listed on the Nigerian Stock Exchange. The research employs an ex post facto design, focusing on 13 listed industrial goods companies as of September 1, 2023, and analyzes data from 2013 to 2023 using a census sampling approach. The Generalized Method of Moments (GMM) was applied to estimate the relationship. The findings indicate that Board Size (BSIZE) does not significantly affect the quality of financial reporting. At the same time, Firm Size (LogFSIZE) plays a crucial role in moderating the relationship between Board Independence (BIND) and financial reporting quality. Based on these results, the study recommends that companies prioritize optimizing board composition by focusing on the quality, expertise, and diversity of board members rather than simply increasing the number of directors. Additionally, larger firms should aim for a higher proportion of independent directors, as they are more likely to benefit from the unbiased oversight they provide, which is essential for ensuring high-quality financial reporting.