<abstract xmlns="http://www.w3.org/1999/xhtml">

<p>The study investigated the Effect of Corporate Governance Structure and Financial reporting quality of quoted Pharmaceutical companies in Nigeria. A total of ten Pharmaceutical companies were used from 2006-2019. Data were extracted from the annual report and accounts of the Pharmaceutical companies in Nigeria. Financial reporting quality was calculated using Dechow and Dicher’s (2002) model. The Housman test of multiple regression analysis was employed to test the hypotheses. The result found that Board independence has a positive effect on the financial reporting quality, Board compositions have a positive and significant effect on financial reporting quality, Board meeting has negative association on the financial reporting quality of pharmaceutical companies in Nigeria. The ownership structure also reflects the positive and significant financial reporting quality of the selected companies. The number of times the risk management committee meets yearly as an indicator of corporate governance structure yield a positive influence on the financial reporting quality of selected pharmaceutical companies. The result for a ratio of female members in the board, i.e. gender composition and numerical strength of Audit committee members each, is yielding positive and significant effect on financial reporting quality. The r-squared outcome of 55% implies the ability of the selected pharmaceutical companies in Nigeria. The regression model is also supported by the outcome of Durbin-Watson statistics which is close to 2, indicating the possible absence of autocorrelated in the regression model. It, therefore, recommends that quoted firms should adhere to the guidelines given by CBN and SEC on the code of corporate governance as it affects their financial reporting quality. Regular and spontaneous supervising functions/checks by the different regulating agencies are also recommended.</p>
</abstract>

The study investigated the Effect of Corporate Governance Structure and Financial reporting quality of quoted Pharmaceutical companies in Nigeria. A total of ten Pharmaceutical companies were used from 2006-2019. Data were extracted from the annual report and accounts of the Pharmaceutical companies in Nigeria. Financial reporting quality was calculated using Dechow and Dicher’s (2002) model. The Housman test of multiple regression analysis was employed to test the hypotheses. The result found that Board independence has a positive effect on the financial reporting quality, Board compositions have a positive and significant effect on financial reporting quality, Board meeting has negative association on the financial reporting quality of pharmaceutical companies in Nigeria. The ownership structure also reflects the positive and significant financial reporting quality of the selected companies. The number of times the risk management committee meets yearly as an indicator of corporate governance structure yield a positive influence on the financial reporting quality of selected pharmaceutical companies. The result for a ratio of female members in the board, i.e. gender composition and numerical strength of Audit committee members each, is yielding positive and significant effect on financial reporting quality. The r-squared outcome of 55% implies the ability of the selected pharmaceutical companies in Nigeria. The regression model is also supported by the outcome of Durbin-Watson statistics which is close to 2, indicating the possible absence of autocorrelated in the regression model. It, therefore, recommends that quoted firms should adhere to the guidelines given by CBN and SEC on the code of corporate governance as it affects their financial reporting quality. Regular and spontaneous supervising functions/checks by the different regulating agencies are also recommended.

Effect of Corporate Governance Structure and Financial Reporting Quality of Quoted Pharmaceutical Companies in Nigeria

Management Dynamics in the Knowledge Economy

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

The study investigated the Effect of Corporate Governance Structure and Financial reporting quality of quoted Pharmaceutical companies in Nigeria. A total of...

Effect of Corporate Governance Structure and Financial Reporting Quality of Quoted Pharmaceutical Companies in Nigeria

Published Online: Jul 17, 2021

Page range: 225 - 239

Received: Sep 21, 2020

Accepted: May 21, 2021

DOI: https://doi.org/10.2478/mdke-2021-0016

Keywords
Corporate governance, financial reporting quality, Pharmaceutical firm, Husman test, Dechow and Dicher model

© 2021 Kalu Ogbonnaya Amah et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Effect of Corporate Governance Structure and Financial Reporting Quality of Quoted Pharmaceutical Companies in Nigeria

Published Online: Jul 17, 2021

Page range: 225 - 239

Received: Sep 21, 2020

Accepted: May 21, 2021

DOI: https://doi.org/10.2478/mdke-2021-0016

KeywordsCorporate governance, financial reporting quality, Pharmaceutical firm, Husman test, Dechow and Dicher model

© 2021 Kalu Ogbonnaya Amah et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Keywords
Corporate governance, financial reporting quality, Pharmaceutical firm, Husman test, Dechow and Dicher model