Board independence and financial reporting quality: Evidence from consumer goods firms in Nigeria

Authors

  • Orjinta, Hope Ifeoma Department of Accountancy, Chukwuemeka Odumegwu Ojukwu University, Igbariam, Anambra State, Nigeria
  • Okpalaukeje, R.U.C Department of Accountancy, Chukwuemeka Odumegwu Ojukwu University, Igbariam, Anambra State, Nigeria
  • Dave-Okoli, Ngozika Maryann Department of Accountancy, Chukwuemeka Odumegwu Ojukwu University, Igbariam, Anambra State, Nigeria

Abstract

This study investigates the relationship between board independence and financial reporting quality among consumer goods firms listed on the Nigerian Stock Exchange (NSE). Using a panel dataset from 2016 to 2023, we measure board independence through the proportion of non-executive directors and financial reporting quality using accrual-based metrics such as discretionary accruals. The results reveal a statistically significant positive relationship between board independence and financial reporting quality. Firms with higher proportions of independent directors exhibit lower earnings management, greater transparency, and higher reliability in financial disclosures. These findings carry implications for corporate governance reform in emerging markets, particularly Nigeria’s consumer goods sector.

Keywords: Board Independence, Financial Reporting, Nigeria.

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Published

2026-02-11

Issue

Vol. 1 No. 1 (2026)

Section

Articles

License

Copyright (c) 2026 Orjinta, Hope Ifeoma, Okpalaukeje, R.U.C, Dave-Okoli, Ngozika Maryann

Creative Commons License

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

The work is published under Creative Common Attribution Noncommercial 4.0 Licence (CC BY) license. Accordingly,  authors retain the copyright and grant us (Radiant Publisher and its subsidiary journals) the right for first publication.