Corporate Governance and Financial Reporting Quality of Money Deposit Banks in Nigeria
Despite the introduction of corporate governance codes and regulatory reforms aimed at strengthening oversight and accountability, concerns about financial reporting quality persist, particularly in developing economies where enforcement mechanisms may be weak. This study examines the relationship between corporate governance mechanisms and financial reporting quality among the selected Deposit Money Banks (DMBs) in Nigeria. The study is guided by four null hypotheses which posit that board independence, audit committee independence, CEO duality, and the combined governance mechanisms do not significantly affect financial reporting quality. The research adopts a quantitative approach using an ex-post facto research design. Secondary data were collected from the annual reports and financial statements of selected DMBs in Nigeria for the period 2020–2024. Financial reporting quality serves as the dependent variable and is measured using audit opinion, coded dichotomously to distinguish between unqualified and modified audit opinions. Data analysis was conducted using correlation analysis and multiple regression techniques. The regression model evaluates the extent to which financial reporting quality can be explained by corporate governance variables within the same time frame. The findings reveal that board independence, audit committee independence and CEO duality do not exhibit a significant impact on the reporting quality. When considered collectively, corporate governance mechanisms do not demonstrate a statistically significant relationship with financial reporting quality. The study concludes that structural governance mechanisms alone may be insufficient to enhance financial reporting quality within the Nigerian context.. The study contributes to the growing body of literature on corporate governance in emerging markets and highlights the need for governance reforms that emphasize effectiveness, enforcement, and competence rather than mere structural compliance.
Key words: Corporate Governance Financial Reporting Quality, Money Deposit Banks
