Table of Contents
Abstract. 2
CHAPTER ONE. 5
INTRODUCTION.. 5
1.1 Background to the Study. 5
1.2 Problem Statement. 7
1.3 Objectives of the Study. 10
1.4 Research Questions. 10
1.5 Research Hypothesis. 11
1.6 Significance of the Study. 11
1.7 Scope of the Study. 12
1.8 Limitations of the Study. 12
1.9 Organization of the Study. 12
REFERENCES. 13
CHAPTER TWO.. 15
REVIEW OF RELATED LITERATURE. 15
2.1 Introduction. 15
2.2 Theoretical Review.. 15
Information Transparency Theory. 15
Agency Theory. 16
Stakeholder Theory. 17
Legal and Regulatory Compliance Theory. 17
2.3 Conceptual Review.. 18
2.3.1 Overview.. 18
Foundations of Corporate Governance in Nigeria. 18
Accounting as the Pillar of Transparency. 19
Financial Reporting Standards and Compliance. 19
Auditing and Assurance Services. 19
Internal Control Mechanisms. 20
Corporate Social Responsibility (CSR) Reporting. 20
Board Independence and Financial Expertise. 20
Technology and Accounting Information Systems. 20
Challenges and Opportunities. 21
2.4 Empirical Review.. 21
2.5 Summary of Chapters. 23
Chapter Three. 24
Research Methodology. 24
3.1 Introduction. 24
3.2 Research Design. 24
3.3 Population of the Study. 25
3.4 Sample Size and Sampling Techniques. 25
3.5 Data Collection Methods. 26
3.6 Instrumentation. 26
3.7 Validity and Reliability of Instruments. 27
3.8 Method of Data Analysis. 27
3.9 Ethical Considerations. 27
3.10 Summary. 28
CHAPTER FOUR. 29
DATA ANALYSIS AND INTERPRETATION.. 29
4.1 Preamble. 29
4.2 Socio-Demographic Characteristics of Respondents. 29
TABLES BASED ON RESEARCH QUESTIONS. 32
4.3 Analysis of the Respondents’ Views on Research Question one:. 32
4.3 Testing of Hypotheses. 44
Discussion of Findings. 46
CHAPTER FIVE. 49
SUMMARY CONCLUSION AND RECOMMENDATIONS. 49
5.1 Summary. 49
5.2 Conclusion. 50
5.3 Recommendations. 50
REFERENCES. 52
CHAPTER ONE
INTRODUCTION
1.1 Background to the Study
Accountability and protection of stakeholders' interests are the building blocks of corporate governance, shaping the ethical and transparent functioning of organizations. Of late, it has been very important to the Nigerian economy, which is growing very fast and at the same time very dynamic in business. The role of accounting, as regards ensuring good corporate governance, becomes very paramount. In essence, accounting is an essential ingredient of corporate governance, playing a dual role of a foundation for effective decision-making, financial transparency, and stakeholder confidence. This introductory section explores the interactive relationship between accounting practices and good corporate governance in Nigeria. Olowe, R.A., Adeyemi, M.A., & Adaramola, A.O. (2019).
Accounting is the language of business and, as such, provides a systematic method of recording, analyzing, and interpreting financial data. This is particularly important to assist corporate governance structures in analyzing the financial status of organizations, making informed decisions, and undertaking corporate social responsibility in terms of resource utilization. Indeed, this is expected to boost confidence in financial reporting, as it has a fair prospect of commanding increasing international comparability in financial reports, especially in jurisdictions like Nigeria, where the level of foreign investment is being encouraged and where recorded economic growth has awakened locales to improved economic activities. Basically, the effectiveness of different mechanisms of corporate governance directly depends on the reliability of this financial information. Olusegun, A. (2020).
The Nigerian regulatory environment has equally witnessed some developments aimed at encouraging better practices in corporate governance. The regulators, through the Securities and Exchange Commission and the Financial Reporting Council of Nigeria, have also introduced guidelines and codes, emphasizing that accounting standards are part of the ingredients needed for transparent financial reporting. The requirements enhance both the quality of financial information and serve as an impediment to fraudulent practices, thus improving the integrity of structures of corporate governance. Adeniji, A., Adegbite, E., & Amaeshi, K. (2018).
Studies have related accounting practices to corporate governance, some of which are useful in giving an overview of the Nigerian context. The role of accounting information in mechanisms of corporate governance, particularly the demand for accurate timely financial reporting, has been assessed, inter alia, by the works of such scholars as Olowe et al. (2019) and Olusegun (2020). Investigations by Adeniji et al. (2018) and Izedonmi and Egbide (2017) focused on the state of accounting with regard to ensuring transparency, accountability, and restoring stakeholders' confidence in Nigerian corporations. In their totality, these studies stress the relevance of accounting principles in facilitating good corporate governance practices, thereby making available sustainable business environments in Nigeria.
1.2 Problem Statement
Accounting has, therefore, become of modern-day interest as a means to assist in ensuring good corporate governance in Nigeria, given the dynamism of the business environment and demand for accountability and ethics in business conduct. Each of these issues is common in most other developing countries of the world, which face a myriad of problems related to corporate governance, including financial mismanagement, fraud, and lack of accountability. It becomes an indispensable tool in promoting transparency and accountability with the correct and timely reporting of corporate events, absolutely essential in the practice of effective corporate governance. However, one gap does exist in understanding how accounting practices can be best utilized to ensure good corporate governance in the case of Nigeria; and sets of available literature on this topic mostly lack a holistic analysis of the specific mechanisms through which accounting could contribute to improved governance practices.
Of course, addressing such loopholes will go a long way in aiding Nigeria in setting up an atmosphere of business operations that embraces the principles of good corporate governance, hence gaining investor confidence and ensuring economic stability that is in store for sustainability of business operation. Olowe, R.A., Adeyemi, M.A., & Adaramola, A.O. (2019). The only socio-economic context of Nigeria presents challenges nowhere else to be found, thereby calling for a bespoke means of infusing accounting principles into its corporate governance framework. All these factors, including sensibilities of culture, regulatory landscape, and the prevalence of informal business practices in many areas, raise the difficulty levels involved in the role of accounting in ensuring good corporate governance. The investigation into this problem is one of how accounting standards, practices, and reporting mechanisms could be made to align with the particular needs of the Nigerian business environment in such a way as to endow corporate behavior with a culture of transparency, accountability, and responsibility. These issues addressed would provide a better understanding of how accounting could act as a catalyst to encourage good corporate governance in Nigeria to contribute towards the economic development and sustainability of businesses within the region. Olusegun, A. (2020).
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1.3 Objectives of the Study
The main objective of the study is to examine the role of accounting in promoting good corporate governance in Nigeria. Specific objectives of the study are:
- 1. To analyze the impact of robust accounting standards and practices on financial transparency and accountability within Nigerian corporations.
- 2. To evaluate the effectiveness of independent auditing in mitigating financial misconduct and promoting ethical behavior in Nigerian businesses.
- To investigate the relationship between the qualifications and independence of accounting professionals and the quality of corporate governance in Nigerian companies.
1.4 Research Questions
To guide the study and achieve the objectives of the study, the following research questions were formulated:
- To what extent do established and consistently applied accounting standards in Nigeria contribute to increased transparency and accountability in financial reporting by corporations?
- How effectively do independent audits conducted by qualified professionals detect and deter financial misconduct within Nigerian corporations?
- Is there a statistically significant correlation between the qualifications, experience, and independence of accounting professionals and the overall quality of corporate governance practices in Nigerian companies?
1.5 Research Hypothesis
The following research hypothesis was developed and tested for the study:
Ho: There is no statistical significant relationship between accounting and promoting good corporate governance in Nigeria.
1.6 Significance of the Study
The study is important for many reasons. The following are the major stakeholders this paper through its practical and theoretical implications and findings will be of great significance:
Firstly, the paper will benefit major stakeholders and policy makers in the Accounting sector. The various analysis, findings and discussions outlined in this paper will serve as a guide in enabling major positive changes in the industry and sub-sectors.
Secondly, the paper is also beneficial to the organizations used for the research. Since first hand data was gotten and analysed from the organization, they stand a chance to benefit directly from the findings of the study in respect to their various organizations. These findings will fast track growth and enable productivity in the organisations used as a case study.
Finally, the paper will serve as a guide to other researchers willing to research further into the subject matter. Through the conclusions, limitations and gaps identified in the subject matter, other student and independent researchers can have a well laid foundation to conduct further studies.
1.7 Scope of the Study
The study is delimited to Exxon Mobil. Findings and recommendations from the study reflects the views and opinions of respondents sampled in the area. It may not reflect the entire picture in the population.
1.8 Limitations of the Study
The major limitations of the research study are time, financial constraints and delays from respondents. The researcher had difficulties combining lectures with field work. Financial constraints in form of getting adequate funds and sponsors to print questionnaires, hold Focus group discussions and logistics was recorded. Finally, respondents were a bit reluctant in filling questionnaires and submitting them on time. This delayed the project work a bit.
1.9 Organization of the Study
The study is made up of five (5) Chapters. Chapter one of the study gives a general introduction to the subject matter, background to the problem as well as a detailed problem statement of the research. This chapter also sets the objectives of the paper in motion detailing out the significance and scope of the paper.
Chapter Two of the paper entails the review of related literature with regards to corporate governance and integrated reporting. This chapter outlines the conceptual reviews, theoretical reviews and empirical reviews of the study.
Chapter Three centers on the methodologies applied in the study. A more detailed explanation of the research design, population of the study, sample size and technique, data collection method and analysis is discussed in this chapter.
Chapter Four highlights data analysis and interpretation giving the readers a thorough room for the discussion of the practical and theoretical implications of data analyzed in the study.
Chapter Five outlines the findings, conclusions and recommendations of the study. Based on objectives set out, the researcher concludes the paper by answering all research questions set out in the study.
