UNETHICAL ACCOUNTING PRACTICES AND FINANCIAL REPORTING QUALITY OF LISTED INSURANCE COMPANIES IN NIGERIA

doi

Abstract

This study investigates the effect of unethical accounting practices on the financial reporting quality of listed insurance companies in Nigeria over the period 2015 to 2024. The specific objectives are to evaluate the effect of related party transactions, tax evasion, and non-compliance with financial reporting standards on the financial reporting quality of the firms. The study adopts an ex-post facto research design, which is suitable for analyzing past events without manipulating the variables involved. The entire population of 23 listed insurance companies in Nigeria was used as the sample for the study, applying a census approach. Secondary data were collected and analyzed using panel data regression techniques after conducting relevant diagnostic and specification tests. The findings reveal that related party transactions, tax evasion, and non compliance with financial reporting standards each have a significant adverse effect on financial reporting quality. Based on the findings, the study recommends that insurance companies should establish robust internal control systems to monitor and transparently disclose related party transactions, strengthen compliance with tax regulations through training and sanctions, and ensure adherence to financial reporting standards by engaging qualified accounting professionals and 
maintaining continuous professional development programs.