Impact of Firm Attributes on Accounting Consrvatism of Listed Consumer Goods Companies in Nigeria.
Year: 2026
Type: article
Abstract: This study investigates the impact of firm attributes on accounting conservatism among listed consumer goods companies in Nigeria. The study specifically examines how firm size, profitability, and asset tangibility—key attributes that define firm structure and strategy—affect the level of accounting conservatism adopted by companies in the Nigerian consumer goods sector.The research employs ex-post facto research design, utilizing secondary data obtained from the annual financial reports of selected listed consumer goods firms on the Nigerian Exchange Group (NGX) for the period 2015 to 2024. Accounting conservatism was measured using the accrual-based proxy, while firm size, profitability, and asset tangibility served as the independent variables. The data were analyzed using Quantile Least Squares (QLS) regression to account for variations in the conditional distribution of accounting conservatism across different levels of firm characteristics. The findings reveal that firm size has a significant negative effect on accounting conservatism, suggesting that larger firms may engage less in conservative reporting due to their ability to manage earnings and absorb risks. Conversely, profitability exerts a significant positive influence on accounting conservatism, indicating that profitable firms are more likely to adopt conservative practices, possibly due to increased scrutiny from stakeholders. However, asset tangibility does not show a statistically significant relationship with accounting conservatism, implying that the proportion of tangible assets may not directly influence conservative reporting behaviors in the sector. The study recommends that regulatory bodies, such as the Financial Reporting Council of Nigeria, should intensify oversight on larger firms and promote transparency through mandatory disclosure of conservative accounting practices
Institution: Wellspring University
Language: English
Subfield: Accounting
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W7208729257
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