Effect of Firms’ Characteristics on Timeliness of Financial Reports of Quoted Insurance Companies in Nigeria

Abstract

Financial information needs to be made available to users as rapidly as possible to make corporate financial statement information relevant for decision making process. Timely reporting on financial statements is necessary for healthy financial markets. Against this backdrop, this study investigates the effect of firm characteristics on timeliness of financial reports on Nigerian insurance companies from 2008-2017. The study adopts ex-post facto research design and the data were sourced from the financial statements of the sampled companies. The dependent variable was measured by audit report delay while the independent variable was proxied by board size, firm leverage ratio and firm size. The analysis was conducted with the aid of STATA 12 software. The data were analysed by Pairwise correlation, descriptive statistics and ordinary least square (OLS) multiple regression technique. The result reveals that board size has a significant negative effect on audit report delay while firm size has a significant negative effect on audit report delay. The result further reveals that firm leverage has an insignificant negative effect on audit report delay. The study recommends among other things that management of large companies should always ensure that highly qualified personnel are placed at the final accounts section of the parent company and that compilation of financial reports should be gradual and not only towards the accounting year end to avoid unnecessary delay in publication of financial statements.

Keywords: Timelines, Financial report, firm size and firm leverage

DOI: 10.7176/RJFA/10-24-06

Publication date: December 31^st 2019