Enhancing Stakeholders Confidence in Financial Reporting through Corporate Governance and Accounting Ethical Practices in Nigerian Non-Financial Services Firms

Abstract

This study investigates the role of corporate governance and accounting ethical practices on enhancing stakeholders’ confidence in financial reporting in non-financial services firms listed on the Nigerian Exchange Group. Using a longitudinal panel data approach and expo-fact design, the study analyzes secondary data from 16 purposively selected firms over a 20-year period.  The study employs statistical techniques such as descriptive statistics and multiple panel regression of Random effect models alongside with some diagnostic test for data analysis.The study found that established ethical codes significantly enhance stakeholders’ trust, while unethical accounting practices have a detrimental effect. Furthermore, shareholder activism positively influences financial reporting transparency. The research concludes that corporate governance and accounting ethical practices enhance stakeholders’ confidence in financial reporting of the non-financial services firms. The study outcome boosted transparency may attract international investments and enhance market stability. Findings from the study encourage further exploration of governance and ethical dynamics in other sectors. The research calls for stricter regulations to enforce ethical compliance and promote shareholder engagement.The study contributes to more understanding on how ethical and governance practices shape stakeholder confidence in financial reporting within emerging markets. The research recommends that enforcing ethical codes, enhancing shareholder engagement, and instituting regulatory measures to mitigate unethical practices. These findings hold implications for policymakers, practitioners, and academics seeking to foster transparency and accountability in financial reporting.