Board Characteristics and Financial Reporting

Journal of Accounting and Financial Management, 5(1), 30-44 (2019)

20 Pages Posted: 11 Jun 2019

See all articles by Hope Osayantin Aifuwa

Hope Osayantin Aifuwa

Department of Accounting, Faculty of Management Sciences, University of Benin, Benin City

Keme Embele

University of Benin - Department of Accounting

Date Written: January 6, 2019

Abstract

The past corporate accounting scandals have left the accounting profession in doubts of its integrity and relevance. Against this backdrop, we investigated the impact of board characteristics on financial reporting quality of listed manufacturing firms. The study was driven by the positivist research philosophy and a deductive research approach using a multi-method quantitative research design. Descriptive and inferential statistics were employed to summarize the data and to draw inference on the population studied. We employed the Generalized Linear Model Regression in testing the hypotheses stated. Findings revealed that board expertise was statistically significant and positively related to financial reporting quality at 5% level of significance, while board independence and board diversity was found to be insignificantly related to financial reporting quality at 5% level of significance. The study concluded that board characteristics partially affect financial reporting quality. Hence, we recommended that non-executive directors on the board should be reduced to cut excessive management cost.

Keywords: Board independence, Board diversity, Board expertise, Financial reporting quality, Normality, Generalized Linear Model Regression

JEL Classification: J3

Suggested Citation

Aifuwa, Hope Osayantin and Embele, Keme, Board Characteristics and Financial Reporting (January 6, 2019). Journal of Accounting and Financial Management, 5(1), 30-44 (2019), Available at SSRN: https://ssrn.com/abstract=3394421

Hope Osayantin Aifuwa (Contact Author)

Department of Accounting, Faculty of Management Sciences, University of Benin, Benin City ( email )

Edo State, Nigeria
Benin, CA
Nigeria
+2348113232082 (Phone)

Keme Embele

University of Benin - Department of Accounting ( email )

Ugbowo-Lagos Road
University of Benin,
Benin City, Benin City, Edo State PMB 1154
Nigeria

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