INFLUENCE OF MANAGERIAL ABILITY ON FINANCIAL REPORTING QUALITY: EVIDENCE FROM NIGERIAN LISTED NON-FINANCIAL FIRMS
Users of accounting information crave of quality financial reporting,
by emphasising on the quality of the auditors neglecting the attribute
of the managers. This study investigates the influence of managerial
abilities on financial reporting in Nigerian listed non-financial
sectors. The time series research design was employed by selecting
40 non-financial institutions as sample size between 2010 and 2017.
Secondary data obtained from the financial report were analysed
using correlation and logistic regression. It was found that managerial
ability has an inverse relationship on financial reporting quality,
which is consistent with the agency theory. The finding implied that
managers employ their ability to income smoothing for the benefit of
the organisation rather than the interest of the shareholders.