DETERMINANTS OF THE CHANGING VOLUME OF CORPORATE ANNUAL FINANCIAL REPORTS: EMPIRICAL EVIDENCE FROM NIGERIA

Abstract

ABSTRACT This contribution was motivated by the need to investigate the determinants of thechanging volume of corporate annual reports. The study sample was 12 banks purposively selectedfrom the universe of banks quoted on the Nigerian Stock Exchange from 2005 to 2014. The samplewas restricted to 120 firm-year with consistent regression data. The study adopted the balancedpanel data regression technique with a preference for the random effect model since the estimatedcoefficients of both models did not vary significantly. The study found a positive and statisticallysignificant relationship between compulsory disclosure, narrative disclosure, product page countand the volume of the corporate annual report. The relationship between the control variables offirm size and age is insignificant. By implication, there was evidence of optimum use of corporateannual report for governance and accountability, information asymmetry and corporate controland integrated marketing communication. Against the backdrop of the multidimensional usefulnessof the corporate annual report, we recommend that all corporate stakeholders should extensivelyrely on the document for any decision concerning corporate activities. The current study isrestricted to Nigerian quoted banks; we recommend a more robust study that will integrate otherNigerian quoted companies, to help for efficient and extensive generalization