Operations of MNCs and their local affiliates are frequently evaluated and monitored by international governmental agencies such as the United Nations. With these factors, MNCs are more likely to insist on full compliance with all statutory and regulatory requirements of the host countries by their affiliates. Moreover, it enhances their bargaining powers with their host countries (Owusu-Ansah, 1998:615). According to Owusu-Ansah, (1998:615) most multinationals use sophisticated accounting systems that are usually transplanted in their affiliates. So by adoption, these affiliates are likely to operate a similar sophisticated accounting and reporting system like their multinational parent. This means the cost of producing information will be lesser than information costs incurred by local firms with no multinational parent. This will enable them to disclose detailed information at minimal costs. 5.2 Summary of Empirical Findings Research Question 1: What is the extent of compliance of listed financial and non-financial Nigerian companies with the required disclosures of the National Accounting Standard Board (NASB)? Empirical findings from the content analysis of the annual reports reveal that the mean disclosure levels were 0.8970 and 0.8770 for financial and non-financial companies respectively. This is in line with the primary data analysis in which respondents are of the opinion that the financial companies comply more than the non-financial companies with the disclosure requirements of the SASs. The independent samples t-test conducted to compare the SAS disclosure level for financial and non-financial listed companies reveal that there is no significant difference in disclosure levels for financial and non-financial listed companies. t (88) = 1.236, p=.22 and eta squared = 0.017. This shows that the magnitude of the differences in the mean is very small. The result confirms that both the financial and non-financial companies are not fully complying with the disclosure requirements of the NASB. This is in congruence with the studies of Wallace (1988:362), World Bank (2004:12) and Adeyemi (2006). Research Question 2: What is the extent of compliance of listed financial and non-financial Nigerian companies with the required disclosures of IAS/IFRSs that are not contained in the SASs?
Operations of MNCs and their local affiliates are frequently evaluated and monitored by international governmental agencies such as the United Nations. With these factors, MNCs are more likely to insist on full compliance with all statutory and regulatory requirements of the host countries by their affiliates. Moreover, it enhances their bargaining powers with their host countries (Owusu-Ansah, 1998:615). According to Owusu-Ansah, (1998:615) most multinationals use sophisticated accounting systems that are usually transplanted in their affiliates. So by adoption, these affiliates are likely to operate a similar sophisticated accounting and reporting system like their multinational parent. This means the cost of producing information will be lesser than information costs incurred by local firms with no multinational parent. This will enable them to disclose detailed information at minimal costs. 5.2 Summary of Empirical Findings Research Question 1: What is the extent of compliance of listed financial and non-financial Nigerian companies with the required disclosures of the National Accounting Standard Board (NASB)? Empirical findings from the content analysis of the annual reports reveal that the mean disclosure levels were 0.8970 and 0.8770 for financial and non-financial companies respectively. This is in line with the primary data analysis in which respondents are of the opinion that the financial companies comply more than the non-financial companies with the disclosure requirements of the SASs. The independent samples t-test conducted to compare the SAS disclosure level for financial and non-financial listed companies reveal that there is no significant difference in disclosure levels for financial and non-financial listed companies. t (88) = 1.236, p=.22 and eta squared = 0.017. This shows that the magnitude of the differences in the mean is very small. The result confirms that both the financial and non-financial companies are not fully complying with the disclosure requirements of the NASB. This is in congruence with the studies of Wallace (1988:362), World Bank (2004:12) and Adeyemi (2006). Research Question 2: What is the extent of compliance of listed financial and non-financial Nigerian companies with the required disclosures of IAS/IFRSs that are not contained in the SASs?
ACCOUNTING_DISCLOSURES_AND_CORPORATE_ATTRIBUTES.docx