NEXUS BETWEEN CORPORATE HEDGING STRATEGIES AND FINANCIAL REPORTING QUALITY OF LISTED NON-FINANCIAL FIRMS IN NIGERIA
DOI:
https://doi.org/10.67199/pca6sy02Keywords:
Corporate hedging strategies, financial reporting quality, Risk committee Meeting, Risk cultureAbstract
The study investigates the impact of corporate hedging strategies and financial reporting quality of non-financial firms listed on the Nigeria Exchange Group. The study covers ten years, from 2015 to 2024. The population of the study is 103 listed non-financial firms in Nigeria, while 43 firms form the sample size. Ex-post facto and correlational research design was adopted. Financial reporting quality was the dependent variable proxy by real earnings management and corporate hedging strategies as the independent variable proxy by risk committee meeting, risk appetite and risk culture. The findings of the study indicate that risk committee meeting and risk culture significantly improve financial reporting quality. However, the study found that the risk appetite weakened the quality of earnings. The study concluded that risk committee meeting and risk culture improving the quality of reported earnings. The study therefore, recommends that audit committee should hold meetings not less than three times in a year and shareholders and directors of listed non-financial firms in Nigeria should ensure a well-effected risk culture as it mitigate real earnings management. The results will contribute to corporate governance policies and risk management debates in an emerging economy such as Nigeria and have policy implications on regulators and shareholders in refining the effectiveness of the risk management policies.
Keywords: Corporate hedging strategies, financial reporting quality, Risk committee Meeting, Risk culture.
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