An Empirical Examination of the Effect of Firm Size on the Financial Reporting Quality of Quoted Consumer Goods Manufacturing Companies in Sub-Sahara Africa

OGBEBOR, Rowland Osamudiame and IFURUEZE, Meshack S. and OFOR, Theresa Nkechi (2022) An Empirical Examination of the Effect of Firm Size on the Financial Reporting Quality of Quoted Consumer Goods Manufacturing Companies in Sub-Sahara Africa. GOUni Journal of Faculty of Management and Social Sciences, 10 (1). pp. 49-62. ISSN 2550-7265

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Abstract

The study investigates the effect of firm size on financial reporting quality by employing samples from listed consumer goods manufacturing firms in Sub-Sahara Africa between the periods of 2011-2020. In this study, firm size is the independent variable while financial reporting quality is measured in terms of Jones discretionary accrual is the dependent variable. The study is longitudinal covering a period of ten (10) years. That is, from 2011 to 2020 employing consumer goods manufacturing firms in Sub-Sahara Africa. However, only consumer goods manufacturing firms that had all relevant data due to continuous existence were included in the sample. Our final sample size consists of 16 consumer goods manufacturing firms in Nigeria, 7 consumer goods manufacturing firms in Kenya, and 30 consumer goods manufacturing firms in South Africa. In testing for the effect of the above variables on financial reporting quality of listed consumer goods manufacturing firms in Sub-Sahara Africa, we conducted panel least square regression before proceeding to check for inconsistencies with the basic assumptions of the OLS regression. Succinctly, these diagnostics tests include test for multicollinearity as well as test for heteroscedasticity. The panel fixed and random effects were employed and estimated using the appropriate techniques. The findings of the study reveal that firm size has a significant relationship with financial reporting quality in quoted consumer goods manufacturing firm in Sub-Sahara Africa. The study recommends that though larger firms have a stronger tendency to improved financial reporting quality, there is the need for small and medium firms to also focus on improving reporting quality.

Item Type:	Article
Subjects:	H Social Sciences > HJ Public Finance
Divisions:	Faculty of Management and Social Sciences
Depositing User:	mrs chioma hannah
Date Deposited:	31 Jan 2023 13:08
Last Modified:	31 Jan 2023 13:08
URI:	http://eprints.gouni.edu.ng/id/eprint/3956

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