EFFECT OF FINANCIAL REGULATIONS ON CORPORATE REPORTING QUALITY OF LISTED FOOD AND BEVERAGE COMPANIES IN NIGERIA

This study examines the effect of financial regulations on corporate reporting quality among listed food and beverage companies in Nigeria. It focuses on the influence of compliance with International Financial Reporting Standards (IFRS), the Financial Reporting Council of Nigeria (FRCN) Act 2011, and Securities and Exchange Commission (SEC) guidelines on the transparency and reliability of financial disclosures. The research adopts a quantitative approach, utilizing secondary data from audited financial statements of five companies, Nestlé Nigeria Plc, Cadbury Nigeria Plc, Guinness Nigeria Plc, Unilever Nigeria Plc, and PZ Cussons Nigeria Plc, covering the period from 2019 to 2024. Descriptive statistics and panel regression analysis were employed to assess the relationship between regulatory compliance and reporting quality, using indicators such as earnings quality and return on assets (ROA). Findings reveal that firms with higher compliance levels tend to exhibit lower earnings management and stronger financial performance, suggesting improved reporting quality. The study concludes that financial regulations significantly enhance corporate transparency and accountability. It recommends that companies can improve financial reporting quality by establishing strong compliance systems aligned with IFRS and FRCN, conducting regular internal audits, and rigorously overseeing discretionary accruals to boost transparency, investor confidence, and overall firm performance, while regulators should enforce consistent compliance and collaborate to streamline oversight and provide targeted training to improve compliance and reporting in the food and beverage sector.