Effect of managerial share ownership on financial reporting quality of deposit money banks in Nigeria

Abstract

Corporate governance mechanism was introduced to curtail financial manipulation and falsified financial reporting to enrich the financial reporting quality. The effectiveness of the board in its oversight function is dependent on several board attributes. This study examines the effect of the managerial share ownership on financial reporting quality of listed deposit money banks in Nigeria. Secondary method of data collection was employed to extract from the annual reports and accounts of Access Diamond Bank Nigeria Plc during the period 2015 to 2019. Descriptive statistics, Pearson correlation technique and OLS regression were utilized to analyze the study data. The study revealed that managerial share ownership has negative insignificant influence on financial reporting quality of Access Diamond Bank Nigeria Plc. The study therefore recommends that, since managerial share ownership does not play a significant role in corporate management promoting financial reporting quality, the appointment of persons in to management positions should be based on personal attributes of integrity and capability.