ETHICAL PRACTICES AND FINANCIAL REPORTING QUALITY OF SELECTED DEPOSIT MONEY BANKS IN LAGOS STATE, NIGERIA
DOI:
https://doi.org/10.25299/jafar.2025.23763Keywords:
Deposit money banks, Ethical practices, Faithful representation, Financial reporting, RelevanceAbstract
The absence of accounting ethics has resulted in a drop in the quality of financial reporting, which is critical for investors and management. Accountants' code of ethics, which encompasses honesty, impartiality, competence, secrecy, and professional behavior, helps to reduce the probability of misleading financial reporting. This study uses a descriptive survey research approach to assess the impact of ethical practices on the financial reporting quality of selected deposit money banks in Lagos state, Nigeria. The population consisted of employees of five listed deposit money banks in Nigeria. The result indicated that integrity, competence, objectivity, professional behavior and professional independence positively affected relevance. The result also showed that integrity, competence, objectivity, professional behavior and professional independence did not positively affect faithful representation. The result of the hypothesis one concluded that ethical practices had a significant effect on relevance. Hypothesis two concluded that ethical practices did not have a significant effect on faithful representation. Based on the findings, a few recommendations were offered on ethical practices and financial reporting quality; Measure should be made by management to ensure that ethical practices are followed to improve the performance of their organizations and to increase performance at all levels, the management team for deposit money banks should concentrate more attention on ensuring that the structure for ethical practices as it relates to financial reporting possess the required qualities.
Downloads
References
Agwor, T. C., & Okafor, R. (2018). Accounting ethics and financial reporting quality of tourism and hospitality firms in Rivers state. Journal of Accounting and Financial Management ISSN, 4(3), 2018.
Aifuwa, H. O., Embele, K., & Saidu, M. (2018). Ethical accounting practices and financial reporting quality. EPRA Journal of Multidisciplinary Research, 4(12), 31–44.
Al Amosh, H., Khatib, S. F., & Hussainey, K. (2022). The financial determinants of integrated reporting disclosure by Jordanian companies. Journal of Risk and Financial Management, 15(9), 375. https://doi.org/10.3390/jrfm15090375
Alzoubi, E. S. S. (2016). Audit quality and earnings management: Evidence from Jordan. Journal of Applied Accounting Research, 17(2), 170–189. https://doi.org/10.1108/JAAR-09-2014-0089
Bakhtiari, M., & Azimifar, M. (2013). Impact of professional ethics on financial reporting quality. Advances in Environmental Biology, 7(10 S1), 2862–2867.
Baudot, L., Hazgui, M., & Altiero, E. (2023). Ethics and public accounting firms: Something old, something new. In Research handbook on accounting and ethics (pp. 2–18). Edward Elgar Publishing. https://doi.org/10.4337/9781800881020.00009
Belgasem-Hussain, A. A., & Hussaien, Y. I. (2023). Earnings management as an ethical issue in view of Kohlberg’s theory of moral reasoning. Journal of Financial Crime, 30(2), 522–535. https://doi.org/10.1108/JFC-11-2019-0138
Enofe, A. O., Edemenya, C. C., & Osunbor, E. O. (2015). The effect of accounting ethics on the quality of financial reports of Nigeria firms. Research Journal of Finance and Accounting, 6(12), 123–130.
Hjørland, B. (2010). The foundation of the concept of relevance. Journal of the American Society for Information Science and Technology, 61(2), 217–237. https://doi.org/10.1002/asi.21261
Idor, R. M., Odumusor, C. J., & Isek, F. C. (2020). Empirical examination of accounting professional etiquettes and quality of financial statements disclosure. IOSR Journal of Economics and Finance, 11(2), 1–10.
Mabil, A. N. (2019). Investigating effects of accounting ethics on quality of financial reporting of an organization: Case of selected commercial banks in South Sudan. Mediterranean Journal of Social Sciences, 10(1), 177–191. https://doi.org/10.2478/mjss-2019-0016
Mahdi Sahi, A., Abbas, A. F., & FA Khatib, S. (2022). Financial reporting quality of financial institutions: Literature review. Cogent Business & Management, 9(1), 2135210. https://doi.org/10.1080/23311975.2022.2135210
Mitchell, R. B. (1993). Compliance theory: A synthesis. Rev. Eur. Comp. & Int’l Envtl. L., 2, 327.
Mubaraq, S., Abdulrasaq, M., & Saidu, M. (2019). Ethical accounting practices and financial reporting quality: Evidence from listed firms in Nigeria. Accounting and Taxation Review, 3(2), 97–110.
Odar, Jerman, Jamnik, & Kavcic. (2017). Accountants’ ethical perceptions from several perspectives: Evidence from Slovenia. Economic Research-Ekonomska Istraživanja, 30(1), 1785–1803. https://doi.org/10.1080/1331677X.2017.1392885
Ogbonna, G. N., & Appah, E. (2014). Causality of audit expectation gap and corporate performance in Nigeria. Research Journal of Finance and Accounting, 5(9), 11–21.
Osazevbaru, A. O., & Emeni, F. K. (2021). Ethical conduct of accountants and financial reporting quality: A Literature review. FUO Quarterly Journal of Contemporary Research, 9(3), 1–11.
Oyewo, B., Emebinah, E., & Savage, R. (2020). Challenges in auditing fair value measurement and accounting estimates: Some evidence from the field. Journal of Financial Reporting and Accounting, 18(1), 51–75. https://doi.org/10.1108/JFRA-01-2019-0002
Raj, S. K., & Azam, M. R. (2023). A critical review of the 2018 conceptual framework of IASB: a shift towards the primary users of the GPFRs. International Journal of Critical Accounting, 13(3), 191–203. https://doi.org/10.1504/IJCA.2023.136827
Rashid, N., Asfthanorhan, A., Johari, R. J., Hamid, N. A., Yazid, A. S., Salleh, F., Abdullah, B., Ismail, A. H., & Rasit, Z. A. (2018). Ethics and financial reporting assurance. International Journal of Academic Research in Business and Social Sciences, 8(11), 1346–1355.
Smith, E., Williams-Jones, B., Master, Z., Lanviere, V. , Sugimoto, C. R., Paul-Hus, A., ... & Resnik, D. B. (2020). Researchers’ perceptions of ethical authorship distribution in collaborative research teams. Science and Engineering Ethics, 26(4), 1995–2022.
Song, B., & Choi, M. (2023). Testing publics’ perceptions of corporate social advocacy messaging: Linking organizational and social outcomes. International Journal of Strategic Communication, 17(4), 325–344. https://doi.org/10.1080/1553118X.2023.2228293
Widyari, N. Y. A., Sari, I. A. K. T. P., & Putri, P. A. D. W. (2024). Dilema Etis Profesi Akuntan Berdasarkan Aspek Keperilakuan. Jurnal Inovasi Akuntansi (JIA), 2(2), 117–129.
Willmott, H. (2015). Why institutional theory cannot be critical. Journal of Management Inquiry, 24(1), 105–111. https://doi.org/10.36733/jia.v2i2.10145
Yosep, M. (2016). Effect competencies, independence, objectivity of the function of internal audit (implications for quality financial reporting). European Journal of Accounting, Auditing and Finance Research, 4(5), 57–72.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2025 Lateef Kolawole Fijabi, Dr. Chinedu Ahsannaya
This work is licensed under a Creative Commons Attribution 4.0 International License.
