BOARD FINANCIAL EXPERTISE AND FINANCIAL REPORTING QUALITY: A COMPARATIVE STUDY OF NIGERIAN AND MALAYSIAN BANKS

Dr. Odu Victor; ONATUYEH ARUOBOGHA EDWIN

Volume : IX, Issue : V, May - 2019

BOARD FINANCIAL EXPERTISE AND FINANCIAL REPORTING QUALITY: A COMPARATIVE STUDY OF NIGERIAN AND MALAYSIAN BANKS

Dr. Odu Victor, Onatuyeh Aruobogha Edwin

Abstract :

The main purpose of this study is to examine the relationship board financial expertise on financial reporting quality of banks listed on the Nigerian Stock Exchange and Malaysian Bursa. The study focused on 14 banks listed on Malaysia Bursa and 14 banks listed on Nigerian Stock Exchange 2008 – 2017. Financial Restatement was used as proxy for Financial Reporting Quality while Logit regression technique was applied in the analysis of data. The result showed that board financial expertise was negatively related to financial restatement and statistically significant for Nigeria banks, however the relationship was not significant for the Malaysia banks. The study advocates the need to strengthen the professional expertise with the appointment of more chartered accountants to the board of directors of the banks to continuously improve the current state of financial reporting quality