ACCOUNTING STANDARD AND QUALITY OF FINANCIAL REPORTS OF QUOTED DEPOSIT MONEY BANKS IN NIGERIA
Abstract
Banks play important roles in promoting national development. In order to provide efficient services and to perform their statutory roles effectively, banks are required to comply with established standards. This study empirically examined the relationship between accounting standards and quality of financial reports in Nigeria. Five (5) banks out of twenty two quoted banks were randomly selected for analysis over the period covering 2010 to 2017. Data used in the study were sourced from the financial statements of the selected banks for the period under study. Panel data analysis in the form of pooled OLS analysis, fixed effect analysis and random effect analysis alongside post estimation test such as restricted f-test and Hausman test were used. The results revealed that accounting standards measured in terms of IFRS13 ans IAS18 exert positively on quality of financial reports of quoted banks. The result also revealed that Quality of Financial reports such as Timeliness, Relevance, and Faithful Representation exert significant influence on financial reporting quality of quoted bank's with reported coefficient estimates and probability values of 0.084159(P=0.0000),
059716(P=0.0009), 0.084159(P=0.0000) for Timeliness, Relevance, Faithful
Representation respectively. The study concluded that the relationship between accounting standards and quality of financial reports of quoted banks in Nigeria cannot be undermined, The study recommended that in order to enhance performance, Nigerian banks must maintain adequate compliance with accounting standards, and take dose cognizance qualities of financial reports of as their relative significance on performance of Nigerian Banks cannot be undermined.
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