Effect of Accounting Information Disclosures on Financial Reporting Quality of Listed Firms in Nigeria

Abstract

The quality of financial reporting plays a pivotal role in promoting corporate transparency, accountability, and investor confidence in capital markets. This study investigates the effect of accounting information disclosures on the financial reporting quality of listed firms in Nigeria over the period 2017–2024. Specifically, the study examines the effect of financial information disclosure, risk-related disclosure, environmental information disclosure, and intellectual capital disclosure on financial reporting quality. An ex-post facto research design was adopted, using a sample of 103 firms selected through stratified sampling from various sectors of the Nigerian Exchange Group (NGX). Secondary data were obtained from the annual reports of the sampled firms. The study employed the System Generalized Method of Moments (System GMM) estimator as a technique for data analysis. The findings reveal that financial information disclosure, risk related disclosure, and intellectual capital disclosure exert positive and statistically significant effects on financial reporting quality. Conversely, environmental disclosure exhibits a positive but statistically insignificant effect on financial reporting quality. The study concludes that strengthening accounting information disclosures is essential for improving financial reporting quality in Nigeria. It recommends that listed firms enhance the comprehensiveness and transparency of financial, risk-related, and intellectual capital disclosures while progressively improving environmental reporting in line with international sustainability reporting frameworks and global best practices.