Firm-Specific Institutional Factors and Financial Reporting Quality of Quoted Deposit Money Banks in Nigeria

This study investigated the effect of firm specific institutional factors on the financial reporting quality of quoted deposit money banks in Nigeria. In particular, the study examined how the financial reporting quality is affected by the size of the firm, leverage, profitability, liquidity, firm age, and the ownership structure.
This study was conducted with a longitudinal panel research design, where secondary data were collected from the Annual reports of 11 quoted deposit money banks in Nigeria for the period 2014 to 2024. Model selection was done using Hausman specification test and panel regression techniques such as pooled ordinary least squares, fixed effects and random effects models were applied.
The results indicated that the random effects model was the most suitable model for data analysis. The regression results revealed an R² of 0.2614 and F-statistic of 10.952 (p = .000). The results indicated that financial reporting quality is positively associated with firm size (β = 1.5112; p = .002), and that leverage is negatively associated with financial reporting quality (β = -0.7984; p = .028). Profitability showed positive significance (β = 0.1483, p = .003), whereas liquidity (β = 0.0520, p = .100) and firm age (β = 0.0043, p = .821) were insignificant. The ownership structure had a significant negative effect (β = -0.0221, p = .043).
The study concluded that governance-related institutional factors significantly influenced financial reporting quality among quoted deposit money banks in Nigeria.

Financial Reporting Quality, Leverage, Firm Size

1. Alo, D., & Eke , R. I. (2026). Impact Of Corporate Governance Mechanisms On Financial Report Integrity Of Deposit Money Banks In Nigeria. Ayden Journal of Management and Social Sciences, 14(1), 14–36. https://doi.org/10.5281/zenodo.18373495 [Google Scholar] [Crossref]

2. Aruwa, S. S., Naburgi, M. M., & Onobruke, G. S. (2026). Moderating Effect of Audit Quality on Financial Risks and Market Value of Quoted Deposit Money Banks in Nigeria. KASU Journal of Accounting Research and Practice, 11(1). [Google Scholar] [Crossref]

3. Ashogbon, O. S. (2026). Firm characteristics and risk disclosure of listed deposit money banks in Nigeria. International Journal of Business Economics and Management Science, 10(7). https://doi.org/10.70382/hijbems.v010i7.068 [Google Scholar] [Crossref]

4. Bako, P. M. (2025). Corporate Board Attributes, Audit Committee Independence And Audit Quality Of Listed Oil And Gas companies in nigeria. researchgate. https://www.researchgate.net/publication/398142309_corporate_board_attributes_audit_committee_independence_and_audit_quality_of_listed_oil_and_gas_companies_in_nigeria [Google Scholar] [Crossref]

5. Celestin, M., Gidisu, J. A., Vasuki, M., & Kumar, A. D. (2026). The Impact Of Board Independence On Financial Transparency And Earnings Quality. Indo American Journal of Multidisciplinary Research and Review, 10(1), 57–70. https://doi.org/10.5281/zenodo.18994414 [Google Scholar] [Crossref]

6. Dechow, P. M., Sloan, R. G., & Sweeney, A. P. (1995). Detecting earnings management. Accounting review, 193-225. [Google Scholar] [Crossref]

7. Eugenia, O. N. (2026). Audit committee characteristics and financial reporting quality of listed conglomerate firms in Nigeria. International Journal of Innovative Finance and Economics Research 14(2):90-98, April-June, 2026 [Google Scholar] [Crossref]

8. Ezedike, N. P., & Ezuma, S. C. (2025). Corporate governance and financial reporting in selected deposit money banks in Nigeria. Economics and Financial Issues Journal. [Google Scholar] [Crossref]

9. Ezeonu, N. A., Emengini, S. E., Okey-Okoro, C., & Alajekwu, U. B. (2025). Audit committee and financial reporting quality of non-financial firms in Nigeria. Journal of Innovations in Accounting Research. [Google Scholar] [Crossref]

10. García Lara, J. M., García Osma, B., & Penalva, F. (2016). Accounting conservatism and firm investment efficiency. Journal of Accounting and Economics, 61(1), 221–238. https://doi.org/10.1016/j.jacceco.2015.07.003 [Google Scholar] [Crossref]

11. Ibe, A., Okpanachi, J., & Friday, A. (2025). Board Size and Earnings Management of listed Deposit Money Banks in Nigeria Moderated by Audit Committee Expertise. Unpublished manuscript]. ResearchGate. https://www. researchgate. net/publication/392821410. [Google Scholar] [Crossref]

12. Ibrahim, J., David, K. O., Ajiteru, W. O., Adinoge, Z. O., & Idowu, O. O. (2026). Earnings Management and Market Value of Listed Deposit Money Banks in Nigeria. Integral Research, 3(2), 11-23. https://doi.org/10.57067/ [Google Scholar] [Crossref]

13. Isah, A., Aliyu, D. R. U. B., Ndagi, S., Lapai, I., & Garba, A. (2026). Audit quality and financial reporting quality evidence from Nigerian listed deposit money banks. Uniport Journal Of Business, Accounting & Finance Management, 17(2). [Google Scholar] [Crossref]

14. Kanwai, M. C., & Irom, M. I. (2026). Managerial ownership and value of listed deposit money banks in Nigeria. KASU Journal of Accounting Research, 11(1). http://journals.kasu.edu.ng/index.php/Accounting/issue/view/1 [Google Scholar] [Crossref]

15. Kateb, I. (2024). The bridge to quality financial reporting: Audit committees’ mediating role in IFRS implementation for emerging markets. Journal of Corporate Accounting & Finance, 35(1), 250-268. https://doi.org/10.1002/jcaf.22664 [Google Scholar] [Crossref]

16. Khamees, M. I., Umar, M. S., Dadda’u, H., & Khamis, Z. (2026). Effect of Firm Size and Profitability on Sustainability Reporting of Listed Industrial Goods Firms in Nigeria. KASU Journal of Accounting Research and Practice, 11(1). [Google Scholar] [Crossref]

17. Koroye, E., Li, J., Mykhayliv, D., & Gozgor, G. (2026). Equity Ownership Structure and Timeliness of Financial Reporting: Evidence from the Listed Financial Companies in Nigeria. Emerging Markets Finance and Trade, 62(1), 192–207. https://doi.org/10.1080/1540496X.2025.2535709 [Google Scholar] [Crossref]

18. Kothari, S. P., Leone, A. J., & Wasley, C. E. (2005). Performance matched discretionary accrual measures. Journal of Accounting and Economics, 39(1), 163–197. https://doi.org/10.1016/j.jacceco.2004.11.002 [Google Scholar] [Crossref]

19. Moshood A. A, Lawal Q. A. Shogelola A. I, Ayodele M. G. (2026). Managerial Efficiency and Financial Reporting Quality in Quoted Deposit Money Banks in Nigeria. International Journal of Innovative Science and Research Technology, (5)2, 1-6. DOI: https://doi.org/10.54536/ajebi.v5i2.7400 [Google Scholar] [Crossref]

20. Moshood A. A. (2026). Auditor’s Independence and Financial Reporting Quality of Quoted Deposit Money Banks in Nigeria. International Journal of Research and Innovation in Applied Science 11(3),564-571 https://doi.org/10.51584/IJRIAS.2026.11030052. [Google Scholar] [Crossref]

21. Musa, F. (2025). Moderating effect of audit committee financial expertise on the relationship between board attributes and financial reporting quality of listed fintech firms in Nigeria. ANUK College of Private Sector Accounting Journal, 2(3), 232-240. https://doi.org/10.65922/7thqae33 [Google Scholar] [Crossref]

22. Ntim, C. G., Lindop, S., & Thomas, D. A. (2013). Corporate governance and risk reporting in South Africa: A study of corporate risk disclosures in the pre-and post-2007/2008 global financial crisis periods. International Review of Financial Analysis, 30, 363-383. https://doi.org/10.1016/j.irfa.2013.07.001 [Google Scholar] [Crossref]

23. Nwanji, T. I. (2021). Audit committee quality and financial reporting in deposit money banks in Nigeria. Asian economic and financial review, 11 (2), 104-117. https://doi.org/10.18488/journal.aefr.2021.112.104.117 [Google Scholar] [Crossref]

24. Oladejo, M. O., & Hammed, R. O. (2025). Relationship between audit quality attributes and earnings quality of selected deposit money banks in Nigeria. Harvard International Journal of Innovative Research and Advanced Studies. 8(2). https://doi.org/10.70382/hijiras.v08i2.036 [Google Scholar] [Crossref]

25. Onatuyeh, E. A. (2025). Impact of financial reporting on bank performance in Nigeria. International Journal of Innovative Finance and Economics Research 13(3), 87-101. [Google Scholar] [Crossref]

26. Orjinta, H. I., & Okpalaukeje, R. U. C. (2026). Board independence and financial reporting quality: Evidence from consumer goods firms in Nigeria. Contemporary Economics & Finance Review, 1(1). https://radiantpublisher.com/index.php/cefr/article/view/14 [Google Scholar] [Crossref]

27. Paul, A. A., Doshiro, M. U., & Saliu, S. T. (2026). Effect of Audit Firm Attributes on Financial Reporting Quality of Listed Deposit Money Banks in Nigeria Moderated by Audit Committee Financial Expertise . Journal Of Emerging Trends In Management Sciences And Entrepreneurship, 8(1), 283–295. Retrieved from https://www.jetmase.com/index.php/jetmase/article/view/206 [Google Scholar] [Crossref]

28. Qasem, A., Mohammed, A., Battisti, E., & Ferraris, A. (2025). Ownership structure and firm sustainable investments: evidence from emerging markets. International Journal of Emerging Markets, 20(2), 609-637. https://doi.org/10.1108/IJOEM-07-2022-1062 [Google Scholar] [Crossref]

29. Shuaib, Y. M., & Dabor, A. O. P. (2025). Board Composition, Ownership Structure, and Earnings Management among Listed Deposit Money Banks (DMBs) in Nigeria. International Journal of Spectrum Research in Social and Management Sciences (IJSRSMS), 1(2), 176–204. https://doi.org/10.5281/zenodo.15740822 [Google Scholar] [Crossref]

30. Sulaiman-oloko, A. B. D. U. L., Oyinloye, L., & Folorunsho, O. P. (2026). Financial Ethics And The Quality Of Financial Reporting In Nigerian BAnking Sector. International Journal of Financial Research and Business Development, 11(7). https://doi.org/10.70382/mejfrbd.v11i7.085 [Google Scholar] [Crossref]

31. Tijjani, B., & Umaru, S. Y. (2026). Institutional ownership and earnings management of listed deposit money banks: Evidence from an emerging economy. International Journal of Managerial and Financial Accounting, 18(2), 204 - 223. https://doi.org/10.1504/IJMFA.2026.10067325 [Google Scholar] [Crossref]

32. Umar, A. A., Aliyu, D. R. U. B., & Garba, A. (2026). Impact of audit independence and audit firm size on financial reporting quality of listed financial services firms in Nigeria. Journal Of Accounting And Business, 13(1), 24-44. [Google Scholar] [Crossref]

33. van Oordt, M. (2015). A Summary of Introductory Econometrics By Wooldridge. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.3401712 [Google Scholar] [Crossref]

34. Yahaya, O. A. (2026). Does board gender diversity affect financial reporting quality in Nigeria. Journal of Accounting and Finance Research, 21(1), 716-769. https://doi.org/10.11011/jafr.vol21.iss1.716 [Google Scholar] [Crossref]

35. Yahaya, O. A. (2026). Integrated Reporting Quality and Investment Efficiency of Listed Firms in Nigeria. Journal of Finance and Business Research, 12(3), 611–638. https://doi.org/10.5281/zenodo.18978603 [Google Scholar] [Crossref]

36. Yasser, Q. R., Mamun, A. A., & Hook, M. (2017). The impact of ownership structure on financial reporting quality in the east. International Journal of Organizational Analysis, 25(2), 178–197. https://doi.org/10.1108/ijoa-08-2015-0894 [Google Scholar] [Crossref]

• The Role of Value and Growth Stocks in Portfolio Returns: Insights From the Nigerian Stock Market
• The Impact of Environmental, Social, Governance (ESG) and Profitability on Firm Value Moderated by Firm Size
• Assessment of the Impact of Environmental Operating Costs on Return on Assets: Evidence from Listed Breweries in Nigeria
• Mobile Money and Digital Financial Services Ecosystem in Adamawa State
• A Quantitative Approach of Professional Skepticism and Fraud Detection among Malaysian Internal Auditors