Board Characteristics and Financial Reporting Quality in Listed Nigerian Firms: Stakeholders’ Perspective

The study examined the nexus between board characteristics and financial reporting quality of listed firms in Nigeria: Stakeholders’ theory perspective. The objective of the study was to examine the effect of various board attributes like board size, independence, diligence and gender diversity on financial reporting quality. Alongside these variables the study employed firm size and return on assets as control variables. The study covered a period of 10 years ranging from 2014-2023. The study employed the use of descriptive and inferential statistical tools in analyzing the secondary data sourced from financial reports of the sampled companies. The hypotheses stated were tested using the random effect regression model following the result of the Hausman test. The study findings revealed that board size, independence, diligence, gender diversity and firm size maintain positive insignificant relationship with financial reporting quality of listed firms in Nigeria. Return on asset recorded positive significant effect on financial reporting quality of listed Nigerian firms. The study therefore recommended that Nigerian firms consider strengthening their corporate governance structures by enhancing board diversity, particularly in terms of gender, as this was the only variable found to show a marginal but positive impact on financial reporting quality. The study concluded that despite the theoretical emphasis on the importance of board size, independence, and diligence in enhancing financial transparency, these variables were found to have limited direct effects on financial reporting quality in the Nigerian context.