Timeliness and Relevance of Financial Reporting in Nigerian Quoted Firms

Abstract

Financial accounting standards emphasize timeliness as one of the key components of decision-driven informational
relevance. Accordingly, if information is not available as and when due but rather made available so late that it bears no
value for future action, then it is operationally irrelevant. To fulfil their primary objective and be useful, therefore,
financial reports are expected to be characterized by relevance, reliability, completeness, and timeliness. Against this
background, this study examined the relationship of firm size and board independence respectively to the timeliness of
financial reporting in companies quoted on the Nigerian Stock Exchange (NSE). Secondary data pertaining to the firms
were derived from their annual reports and the NSE Fact Book for 12 years (2000-2011). Analysis of the research data
involved test of multicollinearity, heteroskedasticity, and autocorrelation; while the multiple regression technique
facilitated the test of research hypotheses. The results established a significant relationship between firm size and
timeliness of financial reporting; while in the case of board independence, the relationship was not significant.
Consequently, it is recommended that regulatory bodies should ensure better of enforcement of standards relating to
timeliness so that financial reports of the firms will be of higher value to key stakeholders.