Non-Financial Disclosure Practices and Financial Reporting Quality of Listed Conglomerates in Nigeria

The main objective of this study was to examine the effect of non-financial disclosures on financial 
reporting quality of conglomerates listed on Nigerian Exchange Group from 2015 to 2024. Non-financial 
disclosure was proxied by corporate governance disclosure, environmental performance disclosure and 
corporate mission and strategy disclosures while financial reporting quality was proxied by an index based 
on the IASB qualitative characteristics. The research design adopted for this study was ex-post facto as the 
data used were secondary. The population and sample size of the study comprised six listed conglomerates, 
thus making use of  census because the population was not too large. The method of data analysis employed 
was ordinary least squares (OLS) regression and the statistical package employed was Stata version 17. 
The findings revealed that corporate governance disclosure has a significant positive effect on financial 
reporting quality; environmental performance disclosure showed a negative effect that was not statistically 
significant; corporate strategy and mission disclosure  had a significant positive effect on financial 
reporting quality of listed conglomerates in Nigeria. Based on these findings, it was concluded that 
adequate disclosure of non-financial information adds value to the firms by enhancing investors' confidence 
and improving the financial reporting quality. Therefore, we recommended that listed conglomerates in 
Nigeria should clearly communicate their corporate strategies and mission statements in annual reports as 
they were found to improve financial reporting quality.