CORPORATE GOVERNANCE AND FINANCIAL REPORTING QUALITY IN LISTED FMCG COMPANIES IN NIGERIA

Abstract

This study investigated the effect of corporate governance on the financial reporting quality of listed Fast-Moving Consumer Goods (FMCG) companies in Nigeria. The study examined governance variables as board size, board dependence, audit committee effectiveness, auditor independence, and audit committee financial expertise, and their influence on reporting quality indicators, including timeliness, relevance, and faithful representation. A quantitative research design was employed using secondary data 
extracted from the annual reports of selected FMCG firms listed on the Nigerian Exchange Group (NGX). The data were analyzed using questionnaires to evaluate the relationship between the governance structures and financial reporting outcomes. Findings reveal that 
audit committee effectiveness and auditor independence significantly enhance financial reporting quality, while board size and independence have limited or negative effects. The study concludes that governance structure in FMCG firms must go beyond formal compliance to deliver meaningful improvements in financial reporting. It recommends 
strengthening governance enforcement, enhancing the competence of boards and committees, and encouraging voluntary disclosures to improve transparency and foster stakeholder trust.   
Keywords: Corporate governance, Financial reporting quality, FMCG companies.