Content uploaded by Evwienure Agama
Author content
All content in this area was uploaded by Evwienure Agama on Jun 03, 2021
Content may be subject to copyright.
International Journal of Business & Management
ICRAW, Copyright © 2021
Firms Attributes and Financial Reporting Quality of
Health-Care Companies in Nigeria
Kingsley, G. Kalagbor
Department of Accounting
Faculty of Business Studies
Ignatius Ajuru University of Education
Amah Cletus PhD
Department of Accounting
Faculty of Business Studies
Ignatius Ajuru University of Education
Agama Evwienure
Department of Accounting
Faculty of Business Studies
Ignatius Ajuru University of Education
ARTICLE INFO
Article History:
Received 03 February 2021
Accepted 0i March 2021
Published 15 April 2021
ABSTRACT:
This study examined firms attributes and financial reporting quality health care companies in Nigeria with a view to
investigate the effect of audit committee independence in accrual quality, determine the effect of audit committee
size on accrual quality to determine the effect of financial expertise on audit committee on accrual quality , as well
as to investigate the Relationship between firm attributes and Reporting of quality health care companies,
theoretically, it’s obvious that literature audit committee attributes and quality of financial reporting in Nigeria
Lacks empirical backing that can be used to investigate empirically Relationship between firm attributes and
financial reporting healthcare companies in Nigeria (albert 2013). Therefore, the study will provide a Useful model
for explaining the quality financial Reporting in Nigeria Health-care companies through identified audit committee
attributes. When the models are developed it will produce empirical facts that will help to bring the Gaps in the
knowledge domain on the subject matter. on the implication of the study, the study will produce empirical evidence
that will encourage Nigeria health-care companies to attain global practices that enhance competitive edge or state
of Nigerian health-care companies service delivery in the Global market. The findings of the study reviews that it
will broaden the frontier of accounting knowledge, it will serve as data to health-care companies for interested
scholars who may wish to carry out further studies in this area.
Keywords: firms, attributes, financial, reporting, Quality and health-care, companies.
Kingsley, g. K. et al
International Journal of Business & Management
ICRAW, Copyright © 2021
INTR O D UCT I O N
Financial reporting in healthcare companies is essentially the responsibility of directors
and this is carried out by accountants and verified by internal auditor. The aim of financial
statements is to provide reliable and accurate information to assist users in decision making.
Kamaruzaman, et al (2009) opined that financial statements should be capable of revealing
relevant, reliable, comparable and comprehensive information. The aim of Generally Accepted
Accounting Principles (GAAP) compliance is to prepare accurate financial statements faithfully
representing a firm's financial positions and operating results. However, Johnson (2005)
contended that an annual report cannot be totally devoid of bias, because economic
phenomenon deposited in annual reports are continually estimated under conditions of
skepticism.
Financial information is required to be available to users as quickly as possible and to make
financial statements relevant for decision making process. Financial reports attempt to meet
the needs of decision making. Yadirichukwu and Ebimobowei (2013) noted that the execution
of this objective relies on the timely availability of financial reports to inform decision making.
The quality of audit reporting is to advance transparency and deliver high quality annual reports
through an all-embracing divulgence. This has added impetus to the accounting standards
setting and laws concerning financial reporting. Warren and Reeze (2004) assert that the
applicable of financial reporting is to assess the economic performance and condition of a
business in the search of keeping track of managements' actions and help in making economic
decisions.
It is as clear as crystal, that the quality of audit reporting has over the years, been an issue of
interest among regulatory bodies, shareholders, accounting professionals and scholars. The
reason being that financial reporting has been a major means of passing on financial
information to users outside the firm. In the Nigerian financial reporting environment, some
empirical works have been carried out, for example, Okike (2000); Ofoegbu and Okoye (2006);
Adeyemi (2006) and Wallace (1988). Wallace work in particular stands as one of the pioneer
studies on the Nigerian corporate reporting. He examined the extent of disclosure through the
applications of statutory and voluntary items in similarity of the work of McMally et al (1982).
The choice of information items was useful to the user group investors, accountants, managers,
civil servants and other professionals. The findings indicated that companies which publish
annual reports do not completely follow the disclosure regime.
Audit committee has been considered as constitutive to quality financial reporting. Ramsey
(2001) submitted that companies set up audit committee to enrich the quality of financial
practices and earnings. Audit committee plays an important role in the interests of
shareholders. The primary functions of the audit committee are to supervise the financial
reporting process and to check the likelihood of managers to control earnings. Recently, audit
has become obligatory for listed companies. Audit committee supervises operation in large
firms in capital market. This makes the audit committee a system of good corporate
governance.
Firms Attributes and Financial Reporting Quality of Health-Care Companies …
International Journal of Business & Management
ICRAW, Copyright © 2021
Audit committee as a concept is based on the goals, functions and responsibilities given to
committee members. According to Al-Thunebut (2006) audit committee is ‘The committee that
is composed of non-executive directors in the establishment’. Audit committee has therefore,
remained a very significant institution that helps the board of directors to enrich the clarity and
decency of financial information reporting. Specifically, effective audit committee ought to
enrich financial reporting quality by performing its multitudinous duties including, commenting
on and approving accounting policies, reviewing the financial statement and maintaining the
adequacy of internal control.
Previous research on audit committee indicates that audit committee effectiveness over
financial reporting are many and is affected by different audit committee characteristics such as
committee size (Dezoort and Salterio, 2001), committee independence (Klein, 2002; Bedard et
al, 2004) and committee number of meetings (Beasley et al, 2000). A number of recent
empirical studies on audit committee has been undertaken, for example, Soliman and Ragab
(2014)” examined “Audit Committee Effectiveness, Audit Quality and Earnings Management: An
empirical study of listed companies in Egypt", Othman (2014) investigated the "influence of
Audit Committee Characteristics on Voluntary Ethics Disclosure", Yadirichukwu and
Ebimobewei (2013) studied "Audit Committee and Timeliness of Financial Report". Empirical
Evidence from Nigeria", Handan, Al-Hayale and Aboagela (2012) looked at the "Impact of Audit
Committee Characteristics on Accounting Conservatism: Additional Evidence from Jordan and
Odegunju (2011) researched on "An Empirical Analysis of Impacts of Auditors Independence on
the Credibility of Financial Statement in Nigeria. “These studies provide strong evidence that
financial reporting is influenced by audit committee characteristics which appear consistent
with value maximizing motives, and they have examined some characteristics of audit
committee in enriching the quality of financial reports. But this study is a unique one using only
four characteristics of audit committee (independence, size, number of meetings and financial
expertise) together in order to check their combine effect in enriching the quality of financial
reporting in healthcare companies. Additionally, this study contributes to the literature by
examining the impact of audit committee characteristics through the information providers'
perspectives and provides empirical evidence on the impact of audit committee characteristics
on the quality of financial reporting and the extent and scope of information disclosed via the
quantitative aspects of financial reporting (earnings management).
Statement of the Problem
Financial reporting entails the preparation by management of accounting information to meet
the requirements of various users. The financial accounting standard board (FASB, 2005) stated
that financial reporting should make available information that is significant for making rational
decisions by investors, creditors and other users. Igben (1999) posits that financial reports
ought to be a forma record of business transactions that presents a general description or
explanation of the state of affairs in the short and long run of a firm to those who use these
financial statements.
Kingsley, g. K. et al
International Journal of Business & Management
ICRAW, Copyright © 2021
The findings of past studies on the subject matter have been found to be inconsistent. For
example, Carcello, et al (2002) found that board characteristics and not audit committee
characteristics relate with the quality of financial reporting. Contrastingly, Abbott, et al (2003)
document a significant positive relationship between audit committee independence, expertise
and the quality of financial reporting and no significant relationship between frequency of audit
committee meetings and the quality of financial reporting. Furthermore, the quality of financial
reporting has witnessed rising challenges for stakeholders within the Nigerian corporate
economy (Cadbury Committee, 1992; Oyejide and Soyibo, 2011; Itsueli, 2006). Wallace, 1988;
Adeyemi, 2006; Nzekwe, 2009) lamented that the financial statement of Nigerian firms have
been discovered to be lacking over time. This according to them, the financial statement is
deficient in important information that will assist stakeholders to make meaningful decision.
In recent times, weak internal control and fraudulent activities among others that are visible
with companies have posited an inimical cordiality to the general public. Many studies may
have been carried out but very few in the Health Sector. This is a worrisome phenomenon and
it makes the present study imperative and necessary at the moment as it seeks to fill the gap by
investigating the impact of audit committee characteristics on the quality of financial reporting
of healthcare companies in Nigeria from 1986 - 2015.
Aim and Objectives Of The Study
In view of the problem stated above, this study purposes to empirically investigate the
relationship between firms attribute and financial reporting quality of healthcare companies in
Nigeria. In specific terms, objectives of the study are to:
Investigate the effect of audit committee independence on accrual quality.
Examine the effect of audit committee size on accrual quality.
Determine the effect of the financial expertise of audit committee on accrual quality.
Research Questions
Thus, in pursuance of the purpose and objectives of the study, the study poses the following
research questions to guide the research focus-”
(i) What is the relationship between audit committee independence and
accrual quality?
(ii) What is the relationship between audit committee size and accrual
quality?
(iii) What is the relationship between the financial expertise of audit
committee and accrual quality?
Research Hypothesis
The following formulated research hypotheses were drawn from the relevant literatures and
will be tested in this study:
Ho1: There is no significant relationship between audit committee.
H02: There is no significant relationship between audit committee size and accrual quality.
Firms Attributes and Financial Reporting Quality of Health-Care Companies …
International Journal of Business & Management
ICRAW, Copyright © 2021
H03: There is no significant relationship between the financial expertise of audit committee and
accrual quality.
Significant of The Study “
The significance of this study rests on its expected theoretical and practical implications.
Theoretically, it is obvious that the literature on audit committee characteristics and the quality
of financial reporting in Nigeria lacks empirical backing (Herbert, 2013). Therefore, this study
will provide a useful model for explaining the quality of financial reporting in Nigeria healthcare
companies through identified audit committee characteristics. This will produce empirical facts
that will bridge the existing gap in the knowledge domain on the subject master. In essence, it
will provoke the curiosity of scholars in this emerging thought to broaden in frontier.
On the practical implication, the study will produce reliable empirical evidence that will
encourage Nigerian healthcare companies to be attuned with global practice that will enhance
the competitive state of Nigerian healthcare companies in the global market.
The study could also be beneficial in providing corporate management useful insight as they
seek to take advantage of corporate reporting for increasing their productivity, profitability,
investment and business growth.
As with many studies of this kind, the findings of this study may provoke the curiosity of
scholars in this emerging thought to broaden the frontier of accounting knowledge and serve as
a data healthcare companies for interested scholars who may wish to carry out further studies
in this area.
Scope Of The Study
This study looks at the audit committee characteristics and the quality of financial reporting
within the context of listed healthcare companies in Nigeria. The present study covers the
period of five years from 1986 - 2015. Audit committee characteristics is proxied by audit
committee independence, audit committee size, audit committee number of meetings and
audit committee financial expertise, on the other hand quality of financial reporting is
represented by earnings management which is proxied by discretionary accruals of the
healthcare companies in Nigeria during the period covered by the study.”
LITE R A TURE R E VIE W
Theoretical Framework
This study is anchored on the theoretical framework on audit committee characteristics and
quality of financial reporting and the extent of this lies on the financial policy, investment
policy, accounting policy and other policies. The company puts forward four conspicuous
theories appeared and offered the feasible direction. These are: The Actor-Network, Agency,
Institutional and Wealth Maximization Theories.
Kingsley, g. K. et al
International Journal of Business & Management
ICRAW, Copyright © 2021
Actor-Network Theory
The Actor-Network Theory is an approach to social and research emanating in the science
studies field, which sees objects as part of social networks popularly known for its controversial
insistence on the capacity of non-human to act in systems, it also has links with compelling
review of conventional and critical compelling review of conventional and critical sociology. The
Actor-Network Theory was developed by Science and Technology Studies (STS) scholars,
Michael Callon Bruno Labour, John Laws and others. It is of the assumption that many relations
are both material and semiotic thus, it maps relations that are simultaneously material and
semiotic.
Actor-Network is a constructive approach that leaves out essentialists explanations of events.
But, it is distinct from any other STS and sociological network theories for the distinct material-
semiotic approach. The theory is a central concept in ANT and it endeavor to explain how
material-semiotic networks come together to act as a whole, the clusters of actors, involved in
creating meaning are both materials and semiotic. Labour (2004) opined that these networks
are implicitly momentary, existing in a stable making and remaking. This implies a consistence
performance of relations else the network will end. There is also the assumption that networks
of relations are not inherently rational, and may indeed accommodate discord.
Agency Theory
According to the agency theory, agency conflicts emanates as a possible divergence of interest
between shareholders (principals) of firms. The setting aside of ownership and control in the
contemporary business world brings about conflicts of interest between managers and
shareholders. The primary onus of managers is to manage the firm in such a way that it begets
returns to shareholders to enhance the profit figures (Elliot and Elliot, 2002). The agency theory
opines that when the principal and agent area expecting the maximization of their utility, it is
reasonable to believe that the agent may involve himself in an opportunistic behaviour at the
expense of the principals' interest. This relationship is one where there exist a situation in
which the principal is not able to directly observe the actions of the agent and could lead to a
moral hazard which increases agency cost. (Jensen and Meckling, 1976). Boodhoo (2009) assert
that the contribution on agency cost theory is such that leverage firms are better for
shareholders since debt level can be used as a check on the managers. Akintoye (2008) posits
that a leverage that is high brings down agency costs, lower inefficiency and leads to
enhancement in corporate performance.
The concern of agency theory is to resolve problems that exist in agency relationship. The two
problems that this theory addressed are (a) the problems that emanates when the goals of the
principal and agent conflicts, and the principal is not able to confirm what the agent is doing (b)
the problems that emanates when the principal and agent have varying attitudes concerning
risks. As a result of varying risk tolerance, the principal and agent may each be disposed to take
different actions.
Generally, agency theory explains how to best arrange relationships where a given party
determines the work, while the other party executes the work. This relationship depicts a
situation where the principal hires an agent to perform a task in which he is not willing to do.
Firms Attributes and Financial Reporting Quality of Health-Care Companies …
International Journal of Business & Management
ICRAW, Copyright © 2021
There is the assumption that the principal and the agents are moved by self-interest. It is this
assumption of self-interest that exposes the agency in unavoidable built-in conflicts.
Institutional Theory
The principal of institutional theory hinges on the fact that an organization is composed of
social and symbolic structures that embraces its wider institutional environment. Scott (2004)
asserts that institutions are social structures that have attained a high degree of resilience that
are composed of cultural cognitive, normative, and regulative elements that together with
associated activities and resources provide stability and meaning to social life. Institutions are
transmitted by various types of carriers, including symbolic systems, rational systems, routines
and artifacts".
Institutional theory takes care of the deeper and more resilient facet of social structure. It
attends to the processes by which structures (schemes, rules, norms and routines) come to be
as definitive outline for social behaviour.
Historical institutionalism emerged in the early 1980s (Hall, 1986) and was named as such by
Steinmo et al (1992). Historical institutionalism sees public administration as an aspect of
political life and inquiries into the premise that the state machinery operates as an
undifferentiated entity and as a passive agent.
The pioneering step in the sociological institutional perspective saw the emergence of Selznick
(1948, 1949) study where public agency are looked at as institutional actors as their field nits
capture and enhance values and interest inherent in the local communities in which they
function.
New institutionalism which is an explicit school of thought originated in the published work of
March and Osten (1984). Government engaged in the formation of is environment and public
administrations are enticed by societal visions and political projects. Thus, those organizations
that take care or pursue affairs should be conceptualized as institutions rather than as
instruments". For Brunssona and Oslen (1997) institutions produce and carryout rubrics and
delineates how the game ought to be played.
Camic (1986) noted that in the past the enlightenment history of the social sciences
emphasized that human activity is engrossed in institutional context where central individuals
were considered as "creatures of habits".
Orori, Meyers and Hwang, (2006) see organizations as both as a research field and a naturalistic
ideology about modern society and wonders why there is the existence of so much formal
organizations. Fredrickson (1999) revealed that institution's theories streams have become
popular in public administration. Since they see public institution as pillars of political orders, as
its outcomes of societal values and as self-constructed social system which makes available a
breathtaking architectural principles for academic debates.
Kingsley, g. K. et al
International Journal of Business & Management
ICRAW, Copyright © 2021
Wealth maximization theory “
Wealth maximization is a modern approach to financial management. In the past, profit serves
as the primary concern of business and financial management. Today, the concept of wealth
maximization exists as a higher goal when compared to profit maximization since it considers a
wider perspective. The market price of the capital invested by shareholders is referred to as the
wealth or value of a business.
Wealth maximization implies the maximization of shareholders wealth. The wealth of the
shareholders is maximized when the net worth of a company maximizes. Finance mangers act
for the shareholder and their primary concern is to look after the shareholders interest. The
shareholders expect good return on their investment.
CON C E P TUA L F RAM E W O RK
Quality of financial reporting
The aim of financial statements is to make available reliable information to assist users in
decision making. Karamanou, et al (2009) stated that financial statements should be able to
show pertinent, dependable, comparable and comprehensible information. It is therefore,
useful to take a critical look at the different arguments given for the different estimates and
assumptions posited in the annual report (Jones and Blanchet, 2000). The IASB (2003), reports
that those who use financial information should be able to comprehend the information
provided effortlessly. The achievement of this lies in full disclosure of the annual report and a
greater level of openness.The quality of financial reporting encourages openness and produces
annual reports that are sound through adequate reporting. Financial reporting is a principal
means of communicating financial information to those outside the firm in assessing the
economic well-being of a company in a bid to oversight management actions and contributes in
making economic decisions (Warren and Reeve, 2004).
The CBN (2009) defines full disclosure requirement as the compulsory financial operational and
management information which financial institutions ought to lay bare as they present their
periodic accounts to the authorities in charge and also to members of the public. A number of
studies have examined the quality of corporate information reporting. For example, (Ofoegbu
and Okoye, 2006; Akhtaruddin, 2005; Naser and Nuseibeh, 2003; Chau and Gray, 2002; Joshi
and Ramadhan, 2002; Ho and Wong, 2001 and Owusu-Ansah, 1998). Each of these studies had
different research settings, different explanation and definition of the explanatory variables,
different disclosed index construction and different statistical analysis. The general findings
regarding the compliance level of companies and the relationship existing between disclosure
level and various corporate characteristics are mixed.
Information reporting in annual reports of companies can be ascertained through the
application of many approaches: Huang (2006) and Gray (2001) and Inchaustic (1997) used a
checklist for evaluating the content of the annual report, MaNally, Eng and Hasseldine (1982)
and Barako (2007) determined financial reporting through the survey of annual report users.
However, some other cases (e.g. Barret, 1975) combined a content analysis of analysis and a
Firms Attributes and Financial Reporting Quality of Health-Care Companies …
International Journal of Business & Management
ICRAW, Copyright © 2021
survey approach by examining the quality of audit reporting through earnings management as
measured by discretionary accruals.
Earnings Management
According of Dechow et al (1995) in Murwaningsari (2008) earnings management is the
manipulation of earnings both inside and outside the boundaries of acceptable accounting
principles generally. Copeland (1968) alluded that earnings management means and includes
the repetitive selection of accounting measurement or reporting rules in a particular pattern,
the consequence of which is to present a stream of income with a smaller variation from trend
than would otherwise would have appeared. Earnings management is defined by Scott (2006),
cited in Mestuti and Mutamainah (2012) as the selection of accounting policy by the custodian
of the financial accounting standards which exist and naturally has the ability to maximize their
utility and also increase their company's market value.
Borneo et al (1976) sees it as the deliberate dampening of fluctuations about some level of
earnings considered being normal for the firm. In views of Merchant and Rockness (1994)
earnings management is seen as any action on the part of management which affects reported
income and provides no true economic advantage to the organization and this according to
them, in the long-run may be harmful.
According to Healy and Wahlen (1999) cited in Liukani (2013)”
"Earnings management occurs when managers when use judgment in financial
reporting and in structuring transactions to alter financial report to either misledsome
stakeholders about the underlying economic performance of the company or to influence
contractual outcomes that depend on reported accounting numbers".
“
However, in this study earnings management can be defined as the actions of manager geared
towards distorting the quality of audit reporting so as to mislead to susceptible users of
financial information. These actions of managers involve doctrine of financial reports by
adopting every accounting means at their disposal.”
Audit Committee Characteristics and Quality Of Financial Reporting
The existence of audit committees has been very vital towards helping the board of directors
improve upon the openness and trust-worthiness of financial information reporting. Audit
committees improve the quality of financial reporting through the execution of its numerous
tasks such as reviewing the financial statements, approving accounting policies and example,
Beasley (1996) findings showed that there is a reasonable lower percentage of board of
directors from outside in firms that commit financial statement fraud than those firms not
committing financial statement fraud. Wild (1996) indicated increase in the enlightenment on a
company's earning disclosure following the setting up of an audit committee.
“
However, recent and emerging research shows audit committees that are independent and
those with some degree of accounting and financial expertise have the tendency to make move
that will enhance the credibility of financial statements. For example, Raghinandan, Reed and
Kingsley, g. K. et al
International Journal of Business & Management
ICRAW, Copyright © 2021
Rama (2001) found that audit committee made up of mainly independent directors and at least
a member with an accounting or finance background has the tendency of having protracted
meetings with the chief internal auditors, engage in secluded meeting with the chief internal
auditor, take a review of the internal auditing program and results, and make a review; and
looked at the association between audit committee characteristics on the quality of financial
reporting on the grounds of financial statement fraud and going concern disclosures. For
example, Beasley et al (2002) examined financial reporting in technology, health care, and
financial services industries and documented that in these industries that there is the existence
of less independent audit committees and boards in firms that commit fraud than do other
firms. This implies the significant role that audit committee independence and expertise can
play in improving the quality of report reporting.
EMPIR ICAL R EVIE W
This section considers some recent empirical studies based on aims, methods, findings and
relevance to present study.
Soliman and Ragab (2014) examine Audit Committee Effectiveness, Audit Quality and Earnings
Management: An empirical study of listed companies in Egypt. The study aimed at examining
the relationship between the audit committee effectiveness, audit quality and earning
management practices of more active 50 Egyptian companies listed on the Egyptian stock
exchange of the non-financial sector during the period 2007-2010. Using the Modified Jones
Model, the findings revealed that audit committees independence, experience of audit
committee members, audit committee meetings and audit quality have significant negative
relationship with discretionary accruals as a proxy for earnings management. It was also found,
that no significant association exist between audit committee size and the levels of
discretionary accruals.
Othman (2014) studied the influence of audit committee characteristics on voluntary disclosure
on top 94 companies listed on Bursa Malaysia. The study used content analysis report and
multiple linear regressions to consider the association between voluntary disclosure and audit
committee characteristics. The findings depict that only characteristics (tenure and multiple
directorships) are related with voluntary disclosure whilst independence, expertise, meeting
frequency and size were inconsistent.
Yadirichukwu and Ebimobowei (2013) investigated Audit Committee and Timeliness of Financial
Reports: Empirical evidence from Nigeria. The aim of the study was to examine the effect of
audit committee and timelines of financial reports for thirty-five firms healthcare in the
Nigerian Stock Exchange (NSE) for the period 2007-2011. The data for the study was gathered
from the annual reports and accounts. Analyzing the data using relevant diagnostic tests,
pooled least square and granger causality test, the findings suggests that audit committee
independence is significantly associated with timeliness of financial reports. Audit committee
meeting is not significantly associated with timeliness of financial reports and audit committee
size is no significantly associated with timeliness of financial reports.
Firms Attributes and Financial Reporting Quality of Health-Care Companies …
International Journal of Business & Management
ICRAW, Copyright © 2021
Hamdan, Al-Hayale and Abongela (2012) researched into the impact of audit committee
characteristics (audit committee size, independence, activity, financial expertise and
percentage of common stock owned by audit committee) on improving accounting
conservation for a sample of 50 Jordanian industrial corporations listed in Amman Stock
Exchange (ASE) during the period of 2004-2009. The study employed the Book-to-Market
approach and total accruals to gross profit to measure accounting conservation, and by using
Pooled Data Regression. The study portrayed that the examined audit committee
characteristics are not significantly related to accounting conservation excluding the financial
expertise of audit committee members which was found to have no positive association with
conservation.
Finally, Odegundu (2011) looked at an empirical analysis of the impact of auditor's
independence on the credibility of financial statements in Nigeria. Data were collected from
both primary and secondary sources and were analyzed using simple percentages and tables
and tested using the chi-square statistic. The results of the study revealed that auditor's
independence affects the credibility of financial statements and that the improvement in the
credibility of the financial statement can reduce manipulation in the financial statement.”
SUMM A R Y A N D CON C L USI ON
Summary, Conclusion and Recommmendations
Firm attributes play very important roles in financial reporting. The generation on quality
earnings information depends on governance mechanisms that are capable of efficiently
supervising the process of accounting information reporting.
REC O M M E NDA T I O NS
The following are the major recommendations for this study:
(a) The management should ensure that there is financial reporting quality to
encourage robust competition, transparency that will attract foreign direct
investment.
(b) The management should ensure that there right resource person in aim of affairs
to make strategic decision on growth analysis.
REFE R E N CE S
Abbott, L.J.; Parker, S.; Peters, G.F. & Raghunandan (2003). The Association between Audit
Committee Characteristics and Audit Fees: Auditing. A Journal of Practice and Theory,
22(2): 17-32.
Adeyemi, S.B. (2006). Impact of Accounting Standards on Financial Reporting in Nigeria,
Unpublished Ph.D Thesis, University of Lagos.
Adelegun, O.J. (2003). An Empirical Analysis of the Relationship between Cash Flow and Duridut
Charges in Nigeria. Journal of Research in Development and Management, 15, 35-49.
Kingsley, g. K. et al
International Journal of Business & Management
ICRAW, Copyright © 2021
Akintoye, I.R. (2008). Effect of Capital Structure on Firm's Performance. The Nigerian
Experience. European Journal of Economics, Finance and Administrative Science, 10,
233-243.
Al-Thunebat, A. (2006). The Light of International Auditing Standards and Local Laws and
Regulations: Theory and Application First Edition, University of Jordan.
Barrett, M.I. (1975). Financial Reporting Practices Disclosure and
Comprehensiveness in an International Setting. Journal of Accounting Research, 14(1):
10-26.
Beasley, M.S. (1996). An Empirical Analysis of the Relation between Board of Director
Composition and Financial Statement Fraud. The Accounting Review, 71(4):443-465.
Beasley, M.S.; Carcello, J.V.; Hermanson, D.R. & Lapides, P.D. (2000). Fraudulent Financial
Reporting: Consideration of Industry Traits and Corporate Governance Mechanisms:
Accounting Horizons, 14(4):441-454.
Bedard, J.; Chtourov, S.M. & Courteau, L. (2004). The Effect of Audit Committee Expertise,
Independence, and Activity on Aggressive Earnings Management. Auditing: A Journal of
Practice and Theories, 23(2): 13-35.
Boodhoo, R. (2009). Capital structure and ownership: a review of literature. The journal of on-
line education, 1-8.
Brunssan, N. and Oslen, J.P. (1997). The Reforming Organization. Bergen:
Fagbokforlaget.
Cacello, J.D.; Hermanson, T.; Neal, T.L. and Riley, R.C. (2002). "BoardCharacteristics and Audit
Fees". Contemporary Accounting Research, 19(7):365-384.
Cadbury Committee, (1992). Report of the Committee on the Financial Aspects of Corporate
Governance. A Code of Best Practice.
Dezoort, F.T. & Salteerio, S.E. (2001). The Effects of Corporate Governance Experience and
Financial Reporting and Audit Knowledge on Audit Committee Members Judgment.
Auditing: a Journal of Practice and Theory, 20(2):31-47.
Elliot, B. & Elliot, J. (2002). Financial Accounting and Reporting 12th Edition, London, Prentice
Hall/Financial Times.
Fredrickson, H.G. (1999). The Repositioning of American Pubic Administrative: PS, Political
Science and Politics, 32(4):701-11.
Gively D.C.; Haya, C. & Lehavy, R. (2009). The Quality of Analysts Cash Flow Forecasts.
Accounting Review, 84(6): 1877-1911.
Healy, P.M. & Wahlen, J.M. (1999). A Review of the Earnings Management Literature and its
Implications for Standard Setting. Accounting Horizons, 13(4), 365-383.
Ho, S. & Wong, K.S. (2001). "A Study of the Relationship between Corporate Governance
Structures and the Extent of Voluntary Disclosure". Journal of International Accounting,
Auditing and Taxation, 10(22): 139-156.
Hamdan, A.M.; Al-Hayale, T.H. & Aboagela, E.M. (2012). The Impact of
Audit Committee Characteristics on Accounting
Conservatism: Additional Evidence from Jordan, J. King S and University Vol. 24,
Administrative Science (1):1-15.
Firms Attributes and Financial Reporting Quality of Health-Care Companies …
International Journal of Business & Management
ICRAW, Copyright © 2021
Igben, (1999). Healthcare in Adebayo, O. (2011). "An Empirical Analysis of the Impact of
Auditors Independence on the Credibility of Financial Statements in Nigeria". Research
Journal of Financial and Accounting, 2(3):82-98.
Inchaustic, B.G. (1997). "The Influence of Company Characteristics and Accounting Regulations
on Information Disclosed by Spanish Firms". The European Accounting Review, 6(l):45-
68.
Itsueli, U.I. (2006). Public Statement: Cadbury Nigeria Pic. Update on Investigation into Financial
Position. The Guardian December 12.
Joshi, P.I. & Ramadhan, S. (2002). "The Adoption of International Accounting Standards by
Small and Closely Held Companies: Evidence from Bahrain". The International Journal of
Accounting, 37, 429-440.
Johnson, T. (2005). Relevance and Reliability. Article from the FASB Report February.
Karamanou, A.J.; Mazlifa, M.D. & Maisarah, A.R. (2009). The Associate between form
Characteristics and Financial Statements Transparency: the Case of Egypt. Internal
Journal Accounting, 18(2), 221-223.
Klein, A. (2002). Audit Committee, Board of Directors Characteristics, and Earnings
Management. Journal of Accounting and Economics, 33, 375-400.
Labour, B. (2004). Reassembly the Social: An Introduction to Action Network Theory. Oxford.
Oxford UP.
March, J.G. & Oslen, J.P. (1934). The New Institution Organizational Fact or in Political Life:
American Political Science Review, 78(5):734-49.
McNally, G.M.; Lee, H.E. & Hasseldine, R. (1982). "Corporate Financial Reporting in New
Zealand: An Analysis of user Preferences, Corporate Characteristics and Disclosures
Practices for Discretionary Information". Journal of Accounting and Business
Research, 13, 11-20.
Naser, K. & Nuseibeh, (2003). Quality of Financing Reporting: Evidence from the listed Sandi
Non-Financial Companies. The International Journal of Accounting, 38, 41-69.
Nzekwe, S. (2009). ANAN Commends Senate on Financial Reporting Council Bill. Guadiana.
Retrieved from www.ngrguadiannews.com. / / indexn3html.accessed4 / 8 / 5.
Owusu-Ansah, S. (1998). The Impact of Corporate Attributes on the Extent of Mandatory
Disclosure and Reporting by listed Companies in Zimbabwe. The International Journal of
Accounting, 33(5):605-631.
Odegunju, A. (2011). An Empirical Analysis of Impacts of Auditors Independence on
Hereditability of Financial Statements in Nigeria Research Journal of Financial and
Accounting, 2(3):32-98.
Ofurum, CO. and Tobira, (2009). Cooperative Governance and Financial Performance in Nigeria.
Okike, E.N. (2000). Corporate governance in Nigeria: The Status Quo, Corporate Financial
Reporting. Journal of Accounting Review, 10(1): 13-37.
Othman, R. (2014). Influence of Audit Committee on Characteristics on Voluntary Ethics
Disclosure, Procedia-Social of Behaviour Science, 145:330-342.
Oyejide, T.A. & Soyibo, A. (2011). Corporate Governance in Nigeria, Paper Presented at
the Conference on Corporate Governance. Accra, Ghana, 29-30 January.
Kingsley, g. K. et al
International Journal of Business & Management
ICRAW, Copyright © 2021
Raghinandan, K.; Reed, W.J. & Rama, D.V. (2001). Audit Committee Composition, Gray
Directors' and Interaction with Internal Auditing. Accounting Horizons, 15(2): 105-118.
Ramsery, I. (2001). Independence of Australian Company Auditors. Review of Current Australian
Requirements and Proposals for Reform Commonwealth of Australia Canbena ACT.
Scot, W.R. (2004). Institutional Theory. P. 408-14 in Encyclopedia of Social Theory. George
Ritzer, Edition, Thousand Oaks, CA Sage.
Soliman, M.M. and Ragab, A.A. (2014). Audit Committee Effectiveness, Audit Quality and
Earnings Management: An Empirical Study of Listed Companies in Egypt. Research
Journal of Finance and Accounting, 5(2):155-166.
Steinmo, S.; Thelem, K. and Longstreth, F. (1992). Structuring Politics: Historical Institutions in
Comparative Analysis. Cambridge: Cambridge University Press.
Yadirichukwu, E. and Ebimobewei, A. (2013). Audit Committee and Timelines of Financial
Reports: Empirical Evidence from Nigeria. Journal of Economics and Sustainable
Development,4(20): 14-25.
Wallace, R.S.O. (1988). Corporate Financial Reporting in Nigeria Accounting and Business
Research, 13(72):352-362.
Wild, J.I. (1996). "The Audit Committee and Earning Quality". Journal of Accounting, Auditing
and Finance, 11(2):247-276.
