ABSTRACT
Financial Institutions, particularly commercial banks, act as financial intermediaries between savers and borrowers of fund. This study examined principally the impact of audited financial statements on effective decision making in Nigerian banking sector. In carrying out this research work, primary data was employed. In specific terms, the methods of data collection employed for this research work were questionnaires distribution and review of relevant literatures. The population under study are the commercial banks in Nigeria. In all, 150 questionnaires were served among the staff of selected banks in the Port Harcourt metropolis and 120 were returned. The data and/or information gathered through the research method adopted were analysed using a simple regression analysis method. The findings offer current and prospective, local and foreign investors an objective assessment of the degree of compliance with SASs and IFRSs by listed companies in Nigeria. After the analyses of the various research questions, the study recommended that adequate steps should be taken by the Nigerian Accounting Standards Board (NASB), Securities Exchange Commission (SEC), Nigerian Stock Exchange (NSE) and other regulatory bodies to ensure full compliance with relevant national accounting disclosure requirements.
INTRODUCTION
................ Published annual reports are required to provide various users - shareholders, employees, suppliers, creditors, financial analysts, stockbrokers, management, and government agencies – with timely and reliable information useful for making prudent, effective and efficient decisions. The extent and quality of disclosure within these published reports vary from company to company and also from country to country. Literature reveals that the level of reliable and adequate information disclosed by listed companies in developing countries lags behind that in developed ones and government regulatory forces are less effective in driving the enforcement of existing accounting standards (Ali, Ahmed and Henry, 2004). Non-disclosure results from immature development of accounting practice in developing nations (Osisioma, 2001). The government regulatory bodies and the accountancy profession in these nations suffer from structural weaknesses which could encourage corporate fraud at the expense of those that have economic and principal interest in the business environment.
The business environment has witnessed changes over the years, mainly influenced by globalization and technological innovation. In recent years, there has been substantial increase in trading activities at the Stock Exchanges worldwide and Nigeria is not left out. For example, the market capitalization at the Nigerian Stock Exchange was N763.9 billion in 2002; it grew to N2.112 trillion in 2004 and to N5.12 trillion in 2006 (NSE Fact book, 2007). Companies worldwide are now vying to penetrate international capital markets. The disclosure of adequate and reliable information is necessary to penetrate these international markets. Those competing for funds in the international capital arena have been found to comply with disclosing mandatory requirements and in addition disclose significantly more voluntary accounting information that enables them to compete globally (Meek, Roberts and Gray, 1995).
Since the fall of Enron in the United States, a wider recognition of the importance of corporate transparency and disclosure has evolved (Akhtaruddin, 2005). Corporate transparency is determined by the information it discloses in its financial report. Accurate, relevant and reliable disclosures are seen as means of enhancing corporate image, reducing cost of capital, and improving marketability of shares. High-quality accounting information facilitates the acquisition of short and long term fund and also enables management to properly account for the resources put in their care. Thus, it acts as a significant spur to the growth and development of money and capital markets, which are fundamental to the smooth running of any economy. Meek et al (1995) submit that effective functioning of capital markets, however, significantly depends on the effective flow of information between the company and its stakeholders.
In the Nigerian context, comprehensive studies of Nigerian listed companies have been conducted by World Bank Group. It is observed that the Nigerian financial reporting practices are deficient (World Bank, 2004).Apart from the studies conducted by the World Bank, disclosure practices by Nigerian companies have been empirically investigated by Wallace (1988), Okike (2000), Adeyemi (2006) and Ofoegbu and Okoye (2006). Their observation is quite similar in that they all found the Nigerian corporate reporting practices to be weak. ...............
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CHAPTER ONE: INTRODUCTION
1.1 Background to the study
1.2 Statement of the problem
1.3 Objective of the study
1.4 Research Questions
1.5 Research Hypothesis
1.6 Significance of the study
1.7 Scope and limitations of the study
1.8 Operational definition of terms
1.9 Reference
CHAPTER TWO: LITERATURE REVIEW
2.1 Introduction
2.2 Legal Framework
2.2.1 Companies and Allied Matters Act (CAMA) CAP. C20 L.F.N. 2004
2.2.2 Development of Accounting Standards (National and International)
2.2.3 Nigerian Accounting Standards Board
2.2.4 International Accounting Standards Board
2.3 Review of Literature on Audited financial statements
2.4 Association between Corporate Attributes and the Extent of Disclosure
2.5 Theoretical Framework
2.5.1 The Positive Accounting Theory
2.6 Conceptual Model
2.7 Reference
CHAPTER THREE: METHOD OF THE STUDY
3.1 Introduction
3.2 Research design
3.3 Area of study
3.4 Population, Sample size and Sampling technique
3.5 Research Instruments
3.6 Measurements of Variables
3.7 Validation of Research Instruments
3.8 Data Analysis Technique
3.9 Reference
CHAPTER FOUR: DATA ANALYSIS, PRESENTATION AND INTERPRETATION
4.1 Introduction
4.2 Questionnaire Response
4.3 Data Presentation and Analysis of Data
4.4 Testing of Hypotheses
CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATION
5.1 Introduction
5.2 Summary of Findings
5.3 Conclusion
5.4 Recommendation
5.5 Contribution to Knowledge
Bibliography
Appendix A Covering Letter and Questionnaire
Appendix B Appendix Statistical Table
Reference code: c008
Reference code: c008
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91 Pages
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