Effect of Financial Attributes on Forward-Looking Accounting Information Disclosure in Quoted Financial Companies in Nigeria

Abstract

This study examines the effect of financial attributes on Forward-Looking Accounting Information Disclosure (FLAID) among quoted financial service companies in Nigeria. The study adopts an ex post facto research design using secondary data obtained from the annual reports of 52 financial service firms listed on the Nigerian Exchange Group (NGX) for the period 2015–2024. The data were analyzed using the System Generalized Method of Moments (GMM) estimator to address potential endogeneity, dynamic effects, and firm-specific heterogeneity. Findings reveal that firm size and profitability exert a positive and significant influence on FLAID, while leverage has a negative and significant effect. However, liquidity was found to be positive but statistically insignificant in explaining forward-looking disclosure practices. The study concludes that firmspecific financial attributes significantly shape the transparency of forward-looking disclosures in Nigeria’s financial services sector. It recommends that regulatory agencies such as the Financial Reporting Council of Nigeria (FRCN) and the Securities and Exchange Commission (SEC) strengthen disclosure frameworks and encourage improved transparency, especially among smaller and highly leveraged firms, to promote market confidence and accountability.