Acceso usuarios
, Titus Andy Okwu, Egwakhe Johnson, Umukoro Jones
Purpose: Accounting information asymmetry increases moral hazard, agency costs, shareholders’ discontent, and further aggravates the discomfort of minority shareholders. As such, how far is so far when connecting information disclosure with firm characteristics has remained a debate. This study thus investigated the nexus between firm characteristics and accounting information disclosure with emphasis on the banking sub-sector in Nigeria.
Theoretical Framework: Accounting information disclosure is not hidden from theoretical discussions within the corridors of opportunistic behaviors, agency-theory and information asymmetry or information failure theory Design/Methodology/Approach: Annual reports of eleven top banks in Nigeria were analyzed covering a period of 5 years from 2010 to 2014 using the firm characteristics – size, profitability, age, and international presence. A disclosure checklist consisting 137 voluntary items was developed and multiple regression analysis performed.
Findings: The results revealed a positive significant relationship between accounting information disclosure with age, international exposure, and a negative significant relationship was observed for profitability and size. Generally, the level of disclosure in the banking sector was found to be high at 62%.
Research, Practical & Social Implications: This study recommends accounting information democratization and sharing to build and restore confidence in banks’ activities and public perception.
Originality/Value: The investigation on how far is so far in accounting information disclosure should be perceived from the eye of the stakeholders investments. Be that as it may, it is only fair and ethically moral for persons/groups that have invested in a business and or in a bank to regularly have access to concrete and verifiable mandatory and voluntary information disclosure on the financial position of their hard-earn funds to make reasonable decisions.
