Human Resource Accounting and Quality of Financial Reporting of Quoted Oil and Gas Companies in Nigeria

Akinlade Olayinka Odunayo; Adegbie Folajimi Festus

doi:doi:10.11648/j.ijafrm.20200504.14

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Human Resource Accounting and Quality of Financial Reporting of Quoted Oil and Gas Companies in Nigeria

Akinlade Olayinka Odunayo, Adegbie Folajimi Festus

Published in International Journal of Accounting, Finance and Risk Management (Volume 5, Issue 4)

Received: 26 September 2020 Accepted: 22 October 2020 Published: 8 December 2020

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Abstract

Financial reporting is a veritable tool that provides information to all stakeholder’s for the purpose of decision making. The preparation and presentation of the report is done by the human asset. Building public confidence for capital market participants, transparency, and trust are very germane in any capital market. Poor earnings quality, opportunistic earnings and biased financial report portents great fears in the mind of investors and analysts alike in making rational investment decisions. The study investigated the effect of human resource accounting on quality of financial reporting (using earnings quality, accounting conservatism, earnings smoothness and persistence as proxies) of quoted oil and gas companies in Nigeria. The study adopted ex-post facto research design. The population of the study was 12 oil and gas companies in Nigeria. Purposive sampling technique was used and considered 12 oil and gas which had secondary data information that covered a period of 10 years from 2004 -2018. The null hypothesis (H₀): Human Resource Accounting does not have significant effect on financial reporting quality in oil and gas companies in Nigeria The empirical findings of financial reporting quality revealed that the human asset provided the basis for these improvement in oil and gas companies with the results F_(8.133)=65.13 (P – value=0.000); Adjusted R²=0.315 and F_(5.102)=217.6 (P – Value=0.000); Adjusted R²=0.323. The study concluded that human resource accounting has significant effect on financial reporting quality of quoted oil and gas companies in Nigeria. The study recommended that the regulatory bodies should find ways of rewarding companies that comply with the regulatory guiding standards and comply with information disclosure for earnings quality assessment and sanction erring companies that conceal relevant and purposeful information from the stakeholders.

Published in	International Journal of Accounting, Finance and Risk Management (Volume 5, Issue 4)
DOI	10.11648/j.ijafrm.20200504.14
Page(s)	195-206
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

Financial Report, Financial Reporting Quality, Human Resource Accounting, Oil and Gas Company, Public Confidence, Regulatory Body

References

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APA Style

Akinlade Olayinka Odunayo, Adegbie Folajimi Festus. (2020). Human Resource Accounting and Quality of Financial Reporting of Quoted Oil and Gas Companies in Nigeria. International Journal of Accounting, Finance and Risk Management, 5(4), 195-206. https://doi.org/10.11648/j.ijafrm.20200504.14

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ACS Style

Akinlade Olayinka Odunayo; Adegbie Folajimi Festus. Human Resource Accounting and Quality of Financial Reporting of Quoted Oil and Gas Companies in Nigeria. Int. J. Account. Finance Risk Manag. 2020, 5(4), 195-206. doi: 10.11648/j.ijafrm.20200504.14

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AMA Style

Akinlade Olayinka Odunayo, Adegbie Folajimi Festus. Human Resource Accounting and Quality of Financial Reporting of Quoted Oil and Gas Companies in Nigeria. Int J Account Finance Risk Manag. 2020;5(4):195-206. doi: 10.11648/j.ijafrm.20200504.14

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@article{10.11648/j.ijafrm.20200504.14,
  author = {Akinlade Olayinka Odunayo and Adegbie Folajimi Festus},
  title = {Human Resource Accounting and Quality of Financial Reporting of Quoted Oil and Gas Companies in Nigeria},
  journal = {International Journal of Accounting, Finance and Risk Management},
  volume = {5},
  number = {4},
  pages = {195-206},
  doi = {10.11648/j.ijafrm.20200504.14},
  url = {https://doi.org/10.11648/j.ijafrm.20200504.14},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijafrm.20200504.14},
  abstract = {Financial reporting is a veritable tool that provides information to all stakeholder’s for the purpose of decision making. The preparation and presentation of the report is done by the human asset. Building public confidence for capital market participants, transparency, and trust are very germane in any capital market. Poor earnings quality, opportunistic earnings and biased financial report portents great fears in the mind of investors and analysts alike in making rational investment decisions. The study investigated the effect of human resource accounting on quality of financial reporting (using earnings quality, accounting conservatism, earnings smoothness and persistence as proxies) of quoted oil and gas companies in Nigeria. The study adopted ex-post facto research design. The population of the study was 12 oil and gas companies in Nigeria. Purposive sampling technique was used and considered 12 oil and gas which had secondary data information that covered a period of 10 years from 2004 -2018. The null hypothesis (H0): Human Resource Accounting does not have significant effect on financial reporting quality in oil and gas companies in Nigeria The empirical findings of financial reporting quality revealed that the human asset provided the basis for these improvement in oil and gas companies with the results F(8.133)=65.13 (P – value=0.000); Adjusted R2=0.315 and F(5.102)=217.6 (P – Value=0.000); Adjusted R2=0.323. The study concluded that human resource accounting has significant effect on financial reporting quality of quoted oil and gas companies in Nigeria. The study recommended that the regulatory bodies should find ways of rewarding companies that comply with the regulatory guiding standards and comply with information disclosure for earnings quality assessment and sanction erring companies that conceal relevant and purposeful information from the stakeholders.},
 year = {2020}
}

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TY  - JOUR
T1  - Human Resource Accounting and Quality of Financial Reporting of Quoted Oil and Gas Companies in Nigeria
AU  - Akinlade Olayinka Odunayo
AU  - Adegbie Folajimi Festus
Y1  - 2020/12/08
PY  - 2020
N1  - https://doi.org/10.11648/j.ijafrm.20200504.14
DO  - 10.11648/j.ijafrm.20200504.14
T2  - International Journal of Accounting, Finance and Risk Management
JF  - International Journal of Accounting, Finance and Risk Management
JO  - International Journal of Accounting, Finance and Risk Management
SP  - 195
EP  - 206
PB  - Science Publishing Group
SN  - 2578-9376
UR  - https://doi.org/10.11648/j.ijafrm.20200504.14
AB  - Financial reporting is a veritable tool that provides information to all stakeholder’s for the purpose of decision making. The preparation and presentation of the report is done by the human asset. Building public confidence for capital market participants, transparency, and trust are very germane in any capital market. Poor earnings quality, opportunistic earnings and biased financial report portents great fears in the mind of investors and analysts alike in making rational investment decisions. The study investigated the effect of human resource accounting on quality of financial reporting (using earnings quality, accounting conservatism, earnings smoothness and persistence as proxies) of quoted oil and gas companies in Nigeria. The study adopted ex-post facto research design. The population of the study was 12 oil and gas companies in Nigeria. Purposive sampling technique was used and considered 12 oil and gas which had secondary data information that covered a period of 10 years from 2004 -2018. The null hypothesis (H0): Human Resource Accounting does not have significant effect on financial reporting quality in oil and gas companies in Nigeria The empirical findings of financial reporting quality revealed that the human asset provided the basis for these improvement in oil and gas companies with the results F(8.133)=65.13 (P – value=0.000); Adjusted R2=0.315 and F(5.102)=217.6 (P – Value=0.000); Adjusted R2=0.323. The study concluded that human resource accounting has significant effect on financial reporting quality of quoted oil and gas companies in Nigeria. The study recommended that the regulatory bodies should find ways of rewarding companies that comply with the regulatory guiding standards and comply with information disclosure for earnings quality assessment and sanction erring companies that conceal relevant and purposeful information from the stakeholders.
VL  - 5
IS  - 4
ER  -

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Author Information

Akinlade Olayinka Odunayo

Department of Accounting, Babcock University, Ilishan-Remo, Nigeria
Adegbie Folajimi Festus

Department of Accounting, Babcock University, Ilishan-Remo, Nigeria

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APA Style

Akinlade Olayinka Odunayo, Adegbie Folajimi Festus. (2020). Human Resource Accounting and Quality of Financial Reporting of Quoted Oil and Gas Companies in Nigeria. International Journal of Accounting, Finance and Risk Management, 5(4), 195-206. https://doi.org/10.11648/j.ijafrm.20200504.14

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ACS Style

Akinlade Olayinka Odunayo; Adegbie Folajimi Festus. Human Resource Accounting and Quality of Financial Reporting of Quoted Oil and Gas Companies in Nigeria. Int. J. Account. Finance Risk Manag. 2020, 5(4), 195-206. doi: 10.11648/j.ijafrm.20200504.14

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AMA Style

Akinlade Olayinka Odunayo, Adegbie Folajimi Festus. Human Resource Accounting and Quality of Financial Reporting of Quoted Oil and Gas Companies in Nigeria. Int J Account Finance Risk Manag. 2020;5(4):195-206. doi: 10.11648/j.ijafrm.20200504.14

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@article{10.11648/j.ijafrm.20200504.14,
  author = {Akinlade Olayinka Odunayo and Adegbie Folajimi Festus},
  title = {Human Resource Accounting and Quality of Financial Reporting of Quoted Oil and Gas Companies in Nigeria},
  journal = {International Journal of Accounting, Finance and Risk Management},
  volume = {5},
  number = {4},
  pages = {195-206},
  doi = {10.11648/j.ijafrm.20200504.14},
  url = {https://doi.org/10.11648/j.ijafrm.20200504.14},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijafrm.20200504.14},
  abstract = {Financial reporting is a veritable tool that provides information to all stakeholder’s for the purpose of decision making. The preparation and presentation of the report is done by the human asset. Building public confidence for capital market participants, transparency, and trust are very germane in any capital market. Poor earnings quality, opportunistic earnings and biased financial report portents great fears in the mind of investors and analysts alike in making rational investment decisions. The study investigated the effect of human resource accounting on quality of financial reporting (using earnings quality, accounting conservatism, earnings smoothness and persistence as proxies) of quoted oil and gas companies in Nigeria. The study adopted ex-post facto research design. The population of the study was 12 oil and gas companies in Nigeria. Purposive sampling technique was used and considered 12 oil and gas which had secondary data information that covered a period of 10 years from 2004 -2018. The null hypothesis (H0): Human Resource Accounting does not have significant effect on financial reporting quality in oil and gas companies in Nigeria The empirical findings of financial reporting quality revealed that the human asset provided the basis for these improvement in oil and gas companies with the results F(8.133)=65.13 (P – value=0.000); Adjusted R2=0.315 and F(5.102)=217.6 (P – Value=0.000); Adjusted R2=0.323. The study concluded that human resource accounting has significant effect on financial reporting quality of quoted oil and gas companies in Nigeria. The study recommended that the regulatory bodies should find ways of rewarding companies that comply with the regulatory guiding standards and comply with information disclosure for earnings quality assessment and sanction erring companies that conceal relevant and purposeful information from the stakeholders.},
 year = {2020}
}

Copy | Download

TY  - JOUR
T1  - Human Resource Accounting and Quality of Financial Reporting of Quoted Oil and Gas Companies in Nigeria
AU  - Akinlade Olayinka Odunayo
AU  - Adegbie Folajimi Festus
Y1  - 2020/12/08
PY  - 2020
N1  - https://doi.org/10.11648/j.ijafrm.20200504.14
DO  - 10.11648/j.ijafrm.20200504.14
T2  - International Journal of Accounting, Finance and Risk Management
JF  - International Journal of Accounting, Finance and Risk Management
JO  - International Journal of Accounting, Finance and Risk Management
SP  - 195
EP  - 206
PB  - Science Publishing Group
SN  - 2578-9376
UR  - https://doi.org/10.11648/j.ijafrm.20200504.14
AB  - Financial reporting is a veritable tool that provides information to all stakeholder’s for the purpose of decision making. The preparation and presentation of the report is done by the human asset. Building public confidence for capital market participants, transparency, and trust are very germane in any capital market. Poor earnings quality, opportunistic earnings and biased financial report portents great fears in the mind of investors and analysts alike in making rational investment decisions. The study investigated the effect of human resource accounting on quality of financial reporting (using earnings quality, accounting conservatism, earnings smoothness and persistence as proxies) of quoted oil and gas companies in Nigeria. The study adopted ex-post facto research design. The population of the study was 12 oil and gas companies in Nigeria. Purposive sampling technique was used and considered 12 oil and gas which had secondary data information that covered a period of 10 years from 2004 -2018. The null hypothesis (H0): Human Resource Accounting does not have significant effect on financial reporting quality in oil and gas companies in Nigeria The empirical findings of financial reporting quality revealed that the human asset provided the basis for these improvement in oil and gas companies with the results F(8.133)=65.13 (P – value=0.000); Adjusted R2=0.315 and F(5.102)=217.6 (P – Value=0.000); Adjusted R2=0.323. The study concluded that human resource accounting has significant effect on financial reporting quality of quoted oil and gas companies in Nigeria. The study recommended that the regulatory bodies should find ways of rewarding companies that comply with the regulatory guiding standards and comply with information disclosure for earnings quality assessment and sanction erring companies that conceal relevant and purposeful information from the stakeholders.
VL  - 5
IS  - 4
ER  -

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