CORPORATE GOVERNANCE AND FINANCIAL REPORTING QUALITY OF LISTED AGRICULTURAL FIRMS IN NIGERIA

ABSTRACT Strengthening governance practices has become central to restoring investor confidence and improving financial disclosures in Nigeria. Consequently, this study examines the impact of corporate governance mechanisms on financial reporting quality in listed agricultural firms in Nigeria. Specifically, it examines the influence of board independence, board financial expertise, and board diligence on the credibility and transparency of financial reporting. The study employed an ex-post facto design. Using secondary source, the study obtained relevant data from the audited annual reports of five agricultural firms listed on the Nigerian Exchange Group between 2012 and 2023. A census sampling technique was applied to select all the five listed agricultural firms. Descriptive statistics, correlation analysis, and panel regression (random-effects model) were applied to analyze the data. The findings reveal that board independence has a positive and significant effect on financial reporting quality (β = 0.0020; p = 0.0124), while board financial expertise also exerts a positive and highly significant effect (β = 0.0015; p = 0.0010). In contrast, board diligence, measured by meeting frequency, shows a negative and significant relationship with financial reporting quality (β = –0.0010; p = 0.0325). Among the control variables, leverage is significant and positive (β = 0.0012; p = 0.0497), whereas firm size and board gender diversity are statistically insignificant. The study concludes that independent directors and financially knowledgeable board members play a crucial role in enhancing the credibility and transparency of financial reporting in the Nigerian agricultural sector. However, frequent board meetings do not guarantee improved oversight, suggesting that quality rather than quantity of engagement is more critical. It was therefore recommended that regulatory bodies should enforce minimum requirements for financial expertise on boards and audit committees, while listed firms should strengthen independent oversight mechanisms. Policymakers should also prioritize governance reforms that promote effective engagement rather than procedural compliance. These measures will help improve transparency, build investor confidence, and enhance sustainable growth in Nigeria’s agricultural industry.