ETHICAL ACCOUNTING PRACTICES AND FINANCIAL REPORTING QUALITY OF SMALL CAPITALIZED FIRMS IN NIGERIA

Authors

  • Michael Rerhime ATOKPE M.Sc. Candidates, Department of Accounting, Faculty of Management Sciences, Delta State University, Abraka, Nigeria.
  • Kesiena Augustina OHRE M.Sc. Candidates, Department of Accounting, Faculty of Management Sciences, Delta State University, Abraka, Nigeria.
  • Mary Perpetual OBUROTA M.Sc. Candidates, Department of Accounting, Faculty of Management Sciences, Delta State University, Abraka, Nigeria.

Abstract

Over time, one of Nigeria's main problems in its aim to become one of world's most thriving economies has been determining how to boost investor trust in country's economy via illicit accounting methods and auditing canons that promote transparency in financial reporting(FRQ). Succinctly, the study examined effect of ethical accounting practices on financial reporting quality(FRQ) of small capitalized firms in Nigeria. Data were extracted via questionnaires, study population is 180 practicing accountant of small capitalized companies in Nigeria. Sample size is 124, random sampling technique was employed using Multiple regression analysis. The multivariate analysis was used to test the research hypotheses. The paper evidenced that: integrity (INGY), objectivity (OBJ) and professional behaviour (PRB) has positive & significant relationship with FRQ. By implication, ethical accounting practices improve financial reporting quality. Accordingly, the study made two recommendations: those professional accountants develop additional strategies to support their members' adherence to ethical standards; and that professional value systems are devoid of any familiarity-based threats to those standards.

Keywords; Ethical Accounting Practices, Financial Reporting, integrity, confidentiality, objectivity.

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Published

13-10-2023

Issue

Vol. 1 No. 1 (2023)

Section

Articles

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