FIRM CHARACTERISTICS AND VOLUNTARY DISCLOSURE OF ACCOUNTING POLICIES OF QUOTED FIRMS IN NIGERIA

Fewer studies have been earned out concerning the association between firm characteristics and accounting disclosure which produced mixed results. This study examines the relationship between firm characteristics (firm size, financial leverage, profitability and board size) and voluntary disclosure of accounting policies of quoted firms in Nigeria. A disclosure checklist consisting of 25 voluntary items was developed for 22 listed companies on Nigerian Stock Exchange (NSE) for the period of 2013 to 2016. The correlation results revealed that firm size, board size and profitability have insignificant negative relationship with the level of accounting disclosure. However, financial leverage has insignificant positive relationship with the level of accounting disclosure. Therefore, the research concludes that relationship exists between firm characteristics and voluntary disclosure of accounting policies of quoted firms in Nigeria. Firms with higher degree of financial leverage suffer serious agency problems and incur higher agency costs. The study recommends that companies should disclosure accounting information because it will assist investors in ascertaining the financial risk in a company. Also emphasis should be on board efficiency as against its size