Effect of Corporate Characteristics on Voluntary Disclosure of Listed Financial Service Firms in Nigeria

Amity Journal of Corporate Governance,3 (2), (29-41), 2018

13 Pages Posted: 13 Nov 2020

See all articles by Olawale Sanni

Olawale Sanni

Ahmadu Bello University (ABU) - Department Of Accounting

Date Written: September 24, 2018

Abstract

This study assessed the effect of corporate characteristics on voluntary disclosure of listed financial service firms in Nigeria for the period of 2014-2018. The study used correlational research design. Data for the study was extracted from yearly-published financial report of listed financial service firms in Nigeria. All the listed financial service firms were considered for the population of this study, while the sample was adjusted population of thirteen (13) listed financial service firms in Nigeria. The data collected were analyzed using paneled regression technique. The result of the regression revealed that profitability and leverage have a negative and significant effect on the voluntary disclosure of financial service firms in Nigeria. However, a positive and significant relationship exists between firm size and voluntary disclosure. In line with the findings, the study recommended that listed financial service firms in Nigeria should incorporate voluntary disclosure to the compulsory disclosure of financial report required by the governing body. This has become necessary in view of the fact that any increase in the profitability and leverage will reduce the level of voluntary disclosure of the financial reports of the firms as evidenced that leverage confines the firms from voluntary disclose information in annual report to posit superior performance based on lesser requirements of transparency and lesser chance of loss of control. In addition, due to self-interest, managers may decide towards voluntary disclosure. However, the Nigeria Financial Reporting Council and other governing body are to guarantee complete conformity with pertinent national accounting disclosure necessities. Since an increase in the excellence of disclosed information will assist the users to make informed predictions, aid the assessment of the firm’s advancement, and lessen the predicament of information asymmetry for investors.

Keywords: Voluntary Disclosure, Profitability, Leverage, Firm Size and ICT

JEL Classification: G2

Suggested Citation

Sanni, Olawale, Effect of Corporate Characteristics on Voluntary Disclosure of Listed Financial Service Firms in Nigeria (September 24, 2018). Amity Journal of Corporate Governance,3 (2), (29-41), 2018, Available at SSRN: https://ssrn.com/abstract=3699051

Olawale Sanni (Contact Author)

Ahmadu Bello University (ABU) - Department Of Accounting ( email )

P.M.B. 1044
Samaru
Zaria, NE Kaduna State 0234
Nigeria

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