Abstract: Effective financial reporting is the backbone of corporate transparency, investor confidence, and
economic stability. In Nigeria’s consumer goods sector, where governance practices can significantly impact financial disclosures, understanding the role of board size and meeting frequency is essential. This study examines the effect of board size, and board meetings on financial reporting quality of listed consumer goods firms in Nigeria for a period of 11 years from 2013 to 2023. The study employed a longitudinal research design, focusing on a population of 21 listed consumer goods firms, from which a purposive sampling technique was used to select a sample of 17 firms. The study utilized multiple regression analysis to examine the relationships between the variables and the study found that board size significantly influences discretionary accruals. Larger boards are associated with higher discretionary accruals, potentially reflecting weaker monitoring. Conversely, the frequency of board meetings has no significant effect on discretionary accruals. The study concludes that optimizing board size enhances financial reporting quality, while meeting frequency has no significant impact. The Financial Reporting Council of Nigeria (FRCN) should set a regulatory limit on board size for listed consumer goods firms, recommending an optimal range (for example, 5 to 10 members) to enhance oversight and reduce discretionary accruals. Additionally, the FRCN should mandate annual corporate governance audits to assess board effectiveness and ensure compliance with financial reporting standards. Non-compliant firms should face penalties or be required to undergo governance restructuring to improve transparency and accountability.
Keywords: Board Size, Board Meetings, Financial Reporting Quality, Discretionary Accruals
Corporate Governance