Moderating Effect of Foreign Ownership Structure on Firm Attributes and Financial Reporting Timeliness in Listed Consumer Goods Companies in Nigeria

Abstract

This study aims to examine the effect of firm attributes (firm size, leverage, and profitability) on financial reporting timeliness, while also exploring the moderating role of foreign ownership. Using an ex post facto research design, the study employs data from 21 consumer goods firms listed on the Nigerian Exchange Group between 2013 and 2022. Secondary data were collected and analyzed using robust regression techniques to account for potential heteroscedasticity and ensure the reliability of results. The findings reveal that firm size and leverage have an insignificant effect on financial reporting timeliness, suggesting that these attributes do not substantially impact the speed of reporting. In contrast, profitability shows a significant negative effect, indicating that more profitable firms tend to delay their financial disclosures. Furthermore, the study finds that foreign ownership significantly moderates the relationship between profitability and financial reporting timeliness but does not significantly affect the relationship between firm size or leverage and timeliness. These findings underscore the need for corporate managers and policymakers to enforce stricter compliance measures and consider the role of ownership structure in promoting timely financial disclosures. The study recommends that firms with significant foreign ownership adopt enhanced transparency practices to align with global standards. For regulators, developing guidelines that address the unique challenges of profitability-related delays can improve overall reporting timeliness. Future research should extend the scope to other sectors and consider additional variables such as governance practices or market conditions to provide a more comprehensive understanding of the factors influencing financial reporting timeliness in different contexts.