EFFECT OF ETHICAL PRACTICES ON FINANCIAL REPORTING QUALITY OF LISTED CONSUMER GOODS COMPANIES IN NIGERIA

This study examines the effect of ethical practices on the financial reporting quality of listed consumer goods companies in Nigeria. Against a backdrop of global corporate scandals and a specific need to reinforce trust in financial information within the Nigerian market, the research focuses on three core ethical principles: integrity, objectivity, and professional behaviour. The study adopted a survey research design, with a population of 450 professional staff (including internal auditors, finance managers, and accountants) from all 21 consumer goods companies listed on the Nigerian Exchange Group (NGX). Using the Taro Yamane formula, a sample size of 212 respondents was determined and selected through a purposive sampling technique. Primary data were collected via a structured questionnaire and analyzed using descriptive statistics (mean, standard deviation) and inferential statistics (Analysis of Variance) with the Statistical Package for the Social Sciences (SPSS). The findings indicate a moderate to positive perception of ethical practices among respondents. Integrity was acknowledged as a core value, though with notable variability in its application, particularly in areas of ethical training and external auditor trust. Objectivity was perceived to be strong in resisting personal bias but weaker in supporting factual verification and independent reviews. Professional behaviour was generally viewed positively, especially regarding adherence to codes of conduct and avoiding conflicts of interest, though encouragement of professional skepticism was limited. However, the ANOVA results revealed that the effects of integrity (p=0.818), objectivity (p=0.683), and professional behaviour (p=0.513) on financial reporting quality were not statistically significant at the 5% significance level. The study concludes that while an awareness of ethical standards exists within listed consumer goods companies in Nigeria, this awareness has not significantly translated into a measurable enhancement of financial reporting quality. This suggests a potential gap between ethical policy and practical, impactful implementation. The study recommends that companies move beyond symbolic adherence to ethics by institutionalizing these principles through robust training, independent verification mechanisms, and a culture that actively rewards ethical conduct and professional skepticism to bridge this gap and ultimately improve the reliability of financial reports