Firm Characteristics and Financial Reporting Quality in Nigerian Manufacturing Firms

The study examines firm attributes and financial reporting quality of Nigerian quoted manufacturing firms. The study adopted the cross sectional research design. The study adopted the secondary method of data collection while the data for the study were analyzed using E-View Computer Software. A multiple linear regression model was used to establish the significance of the model. Findings revealed that; Firm size has a significant relationship with financial reporting quality; Liquidity significantly affects financial reporting quality; Asset growth has no significant relationship with financial reporting quality. In line with the findings of the research, the study recommends that; Investors should consider the firm size of the company they intend investing in, as well as the performance of the companies, as these are pointers to the financial reporting quality of such companies; Also, the percentage of total number shares held by corporate shareholders should be increased as it was revealed by this study that institutional shareholders encourages financial reporting quality of listed consumer goods companies in Nigeria. Institutional shareholders tend to ensure strict adherence to accounting principles in the company to in order to protect their investment; Lastly, a good liquidity position should be maintained as it has been found not only to preserve the going concern of the firm but also a strong feature for enhancing the quality of financial reporting.