CORPORATE GOVERNANCE AND FINANCIAL REPORTING QUALITY OF LISTED DEPOSIT MONEY BANKS IN NIGERIA

Abstract

Recent accounting scandals involving major Nigerian banks such as Oceanic, Intercontinental,
and Unity Bank have intensified concerns over the reliability of financial reporting and the role of
corporate governance in mitigating such failures. This study investigates the impact of board size
and ownership concentration on the financial reporting quality (FRQ) of listed Deposit Money
Banks (DMBs) in Nigeria, focusing on Zenith Bank, United Bank for Africa (UBA), and First Bank.
Anchored on agency theory, the study adopts an ex-post facto research design and utilizes panel
data derived from the annual reports of 17 DMBs between 2011 and 2018. Secondary data were
analyzed using descriptive statistics, correlation analysis, and panel regression modeling, with
firm growth and size controlled. Findings reveal a positive but weak correlation between board
size and FRQ, indicating that board size has limited influence on reporting quality. Conversely,
ownership concentration shows a statistically insignificant and negative relationship with FRQ,
suggesting that concentrated ownership may hinder the objectivity of financial disclosures. These
outcomes highlight potential governance weaknesses in bank oversight mechanisms, especially in
ownership structure. The study recommends the enforcement of robust corporate governance
frameworks that ensure optimal board composition and mitigate the dominance of block
shareholders. Regulatory bodies such as the Central Bank of Nigeria (CBN) and Securities and
Exchange Commission (SEC) should strengthen compliance monitoring and mandate governance
practices that enhance the transparency and timeliness of financial reporting in the Nigerian
banking sector. Enhanced governance structures are essential to restoring investor confidence
and sustaining the integrity of financial disclosures.