FINANCIAL REPORTING QUALITY, PROFESSIONAL ETHICS AND INVESTORS TRUST QUOTIENT IN LAGOS STATE, NIGERIA

This study aims to investigate financial reporting quality, professional ethics on investors’ trust quotient in Lagos State, Nigeria. The method employed for the study was a survey research design, in which data were collected through a well-structured questionnaire instrument. The population of the study comprised all audit firms in Lagos State, while the Big4 audit firms were used as sampling frame for the study with convenience sampling technique. A total of 200 copies of administered questionnaire were returned and analyzed for this study. The data was analyzed using multiple regression analysis. The study reveals that financial reporting quality with pvalue (0.000) have significant influence on investors’ trust quotient. The study also reveals that professional ethics with p-value (0.000) have significant influence on investors’ trust quotient. The study also reveals that the combination of financial reporting quality with professional ethics with p-value (0.000) both have significant influence on investors’ trust quotient. This study concludes that financial reporting quality and professional ethics have significant influence on investors’ trust quotient. It is recommended that the financial reporting regulatory bodies should remain steadfast in their commitment toward upholding of financial reporting quality, and professional ethics, in the discharge of their responsibilities. Key words: Agency Theory, Financial reporting quality, Investors’ trust quotient, Professional ethics, Stakeholders’ theory