Board Composition, Firm Size, Audit Type and Voluntary Disclosure of Forward Looking Information in the Banking Sector: Evidence from Nigeria

Abstract

Using a multivariate regression analysis, this study explored the effect of firm size on the disclosure level of accounting information in the Nigerian Banking sector while controlling for Board Composition, audit quality and profitability. Significant finding of the study is that size of firms significantly affects level of voluntary information disclosed in the annual reports and accounts of banks in Nigeria. Moreover, audit quality, Board Composition and profitability also affect the level of voluntary information disclosed by the banking sector in Nigeria. The implication of the findings is that Banks with high assets based disclosed more discretionary information than banks with small assets base. Also banks that have Big 4 Auditor tend to disclose more discretionary information than do those without the Big 4 Auditors. Even though, banks are most highly regulated in Nigeria and play significant roles in the development of Nigeria’s econoour, regulatory agencies in Nigeria appear not to have been taking cognizance of these special attributes in the regulation of banks accounting reporting practices.

Keywords: Firm Size, Disclosure Level, Voluntary Disclosure, Nigeria Banking Sector.