Board Characteristics and Financial Report Timeliness in the Nigerian Financial Sector: A Dynamic Panel Data Analysis

Authors

  • Fatai Abiodun Atanda University of Ibadan, Nigeria
  • Olubunmi F. Osemene University of Ilorin, Nigeria
  • IyanuOluwa Fanimokun University of Ilorin, Nigeria

DOI:

https://doi.org/10.14276/2285-0430.3587

Keywords:

financial report, board size, board diligence, financial expertise, board independence

Abstract

Lack of timely financial report is an issue to different stakeholder groups because it allows a segment of investors to have costly private information, which they will exploit to the detriment of the less-informed segment.  It has also resulted into loss of credibility in published accounts and led to substantial criticisms of the effectiveness of corporate governance mechanisms like board characteristics. This paper employed dynamic panel data analysis to examine the impact of board characteristics (size, diligence, financial expertise and independence) on financial reports timeliness in the Nigerian financial sector. The study used system generalized method of moments (GMM) to analyze the corporate governance mechanism and financial reports data, collected from 24 purposively-selected listed firms over 11 years. Consistent and strong evidence revealed that board characteristics (size, independence and financial expertise) had significant effect on financial report timeliness. While board independence and board financial expertise led to untimely audited report, board size led to timely audited report. The insignificant effect of board diligence suggests that a mere increase in board meetings was not effective in predicting timely audited financial statements in the selected companies. We recommend increased quality board members with relevant accounting, financial reporting expertise and managerial experience, among others.

Author Biographies

Fatai Abiodun Atanda, University of Ibadan, Nigeria

Dr. Fatai Abiodun ATANDA is a graduate of Obafemi Awolowo University, Ile Ife, Nigeria in Accounting. He obtained Masters and Ph.D. degrees from the same university. He is a Fellow of The Institute of Chartered Accountants of Nigeria (ICAN) and an Associate member of the Chartered Institute of Taxation of Nigeria (ACTI). He is a seasoned academic and researcher in Sustainability Accounting; Finance (corporate, small and public); and Performance Management with over 20 research papers published in reputable local and international journals. His teaching areas of interest are Cost and Management Accounting, Corporate Financial Management and Auditing/Forensic Accounting with over 15 years teaching experience. Dr. Atanda is currently a Senior Lecturer and the Acting Head, Department of Accounting, University of Ibadan, Nigeria. He has attended many local and international workshops, seminars and conferences to enhance his professionalism and research in accounting and finance.

Olubunmi F. Osemene, University of Ilorin, Nigeria

Osemene Olubunmi F. is a Professor of Accounting at the University of Ilorin, Nigeria. She did her B.Sc Accounting .programme at the prestigious Obafemi Awolowo University, Nigeria. Her graduate and doctoral studies in Accounting were carried out at the University of Ilorin, Nigeria. She also possesses a Master of Business Administration at Ladoke Akintola University of Technology in Nigeria. She is a chartered accountant and a Fellow of the Institute of Chartered Accountants of Nigeria. She teaches Cost Accounting, Management Accounting, Environmental Accounting and Investigative and Forensic Accounting at the University of Ilorin. She has also successfully supervised many dissertations and theses of graduate and doctoral students. She has published solely or collaboratively in many highly revered journals locally and internationally. Her research interests cut across management and cost accounting, sustainability accounting with special interests in social and environmental accounting.

IyanuOluwa Fanimokun, University of Ilorin, Nigeria

Fanimokun Iyanuoluwa Olaoluwa studied Accounting. Her first and second degree were obtained from Osun State University, Nigeria and Kwara State University, Nigeria, respectively. She started her career at Villanova Polytechnic Imesi-Ile, now Imesi - Ile Polytechnic in 2020. Immediately after the COVID 19 upsurge she moved to Dominion University, Ibadan in 2021. She is presently running her ICAN, a professional course in Nigeria and running her M.Phil/Ph.D programme in Osun State University, Nigeria.

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Published

24.02.2023

Issue

Vol. 13 No. 1 (2023): International Journal of Economic Behavior

Section

Articles

License

Copyright (c) 2023 Fatai Abiodun Atanda, Olubunmi F. Osemene, IyanuOluwa Fanimokun

Creative Commons License

This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

L'opera è pubblicata sotto Licenza Creative Commons -CC Attribution-ShareAlike 4.0