Archives of Current Research International

Financial reporting quality connotes the accuracy with which financial reports of a firm reflect its operating performance and how useful they are in forecasting future cash flows. Indeed, the financial reporting quality has repeatedly been an area of interest for regulators, pollsters, proprietors of firms and the accounting profession as a result of its significance in having credible and reliable financial information for users’ consumption. This study investigated the effect of firm attributes on the financial reporting quality of selected manufacturing firms in Nigeria. The study used a descriptive and ex-post facto research design; the sample size was twenty (20) firms, while data for the study were sourced from secondary sources, specifically annual reports and accounts of the selected manufacturing firms. Two categories of variables were used in this study: the dependent variable, financial reporting quality, and the independent variable, firm attributes, which were proxied by firm structure (Firm size) and board structure (Board size).Data generated for this study were analyzed using the First Difference Fixed Effects method of E-Views 10. Analyses were carried out using kurtosis, skewness, and mean. The study revealed that firm structure has a significant negative effect on the accounting reliability quality of listed manufacturing firms in Nigeria. Furthermore, it also revealed that board structure has a insignificantly positive effect on the accounting reliability quality of listed manufacturing firms in Nigeria. Firm size: at level (current) is –0.266, statistically significant at 5% (p-value = 0.0025). This indicates a negative significant short-term relationship between firm size and conservative quality of accounts. While Board size: at (1^st Diff.) is 0.665, statistically insignificant at 5% (p-value = 0.0810). This indicates a positive inconsequential short-term relationship between firm size and conservative quality of accounts. In conclusion, the study affirmed that firm attributes, such as firm size and board size, play a significant role in shaping financial reporting quality in the Nigerian manufacturing sector. Thus, it is recommended that manufacturing firms should avoid overly aggressive policies that incentivize rapid firm expansion in short run without complementary effective firm monitoring attributes. As well as ensure that they come up with support policies that promote a large-moderate board size of independent members with financial expertise to enhance financial prudency.