Authors :
Ismael Mwanthi Mbuvi
Volume/Issue :
Volume 7 - 2022, Issue 10 - October
Google Scholar :
https://bit.ly/3IIfn9N
Scribd :
https://bit.ly/3gYqa7F
DOI :
https://doi.org/10.5281/zenodo.7269297
Abstract :
The study was to espouse on the effect of timely
financial reporting by NSE listed manufacturing firms in
Kenya. It aimed at determining the crucial
determinants/factors that influence timely financial
reports to enhance efficiency and productivity of these
firms.
Method: The study utilized the descriptive research
approach in an effort to measure the data patterns in the
aforementioned title. The population of the study was all
10 registered manufacturing firms within the Nairobi
Securities Exchange. The secondary data was collected
from the individual listed sample firm’s annual reports
and financial statements at the 5 years period. The study
adopted a descriptive research method, it was also
arguably quantitative in nature because it majorly relied
on secondary data sources from existing published
audited financial statements of the listed manufacturing
entities for the financial years 2017 – 2021 as reported.
Financial information extracted from the audited
financial statements based on the 5 ratios of the Altman
Z-Score model were used to forecast financial distress of
the 10 manufacturing firms.
Findings: The study findings were that the level of board
independence, audit and risk committee effectiveness,
board size, and firm size barely have any significant
correlation whatsoever with financial reporting quality
and timeliness to effect change in entity performance.
Further study findings established that the model
entailing; entailing corporate governance that include;
board independence, audit and risk committee, and
board size, as well as firm size, explains timely financial
reporting to a very least extent with a coefficient of
determination value of 2.04%. Therefore it was almost
clear that certain factors seldom possessed greater
influence in timely delivery of quality financial reports
by these firms.
In contrast, operating in manufacturing, services
and technology sectors and listing in the NSE index have
a substantial positive influence on the timeliness of
reporting from small, medium to large firms.
Additional study findings were that that the model
entailing corporate governance that include; board
independence, audit and risk committee, and board size,
as well as firm size, does not significantly forecast
financial reporting quality. Final study findings were
that board size have a slim influence on timeliness and
quality reporting.
Implications for Research and Practice: This study
has majorly used secondary data to explore the findings,
empirically, primary data can also be utilized to
ascertain similar results. This can ensue additional
information or infer differences with established findings
to this particular study. The statistical analytical
techniques of the present research were multiple linear
regressions and correlation analyses which involved the
use of the Altman Z-Score model.
Keywords: Corporate governance, financial reporting
and Manufacturing firms, Nairobi Stock Exchange.
The study was to espouse on the effect of timely
financial reporting by NSE listed manufacturing firms in
Kenya. It aimed at determining the crucial
determinants/factors that influence timely financial
reports to enhance efficiency and productivity of these
firms.
Method: The study utilized the descriptive research
approach in an effort to measure the data patterns in the
aforementioned title. The population of the study was all
10 registered manufacturing firms within the Nairobi
Securities Exchange. The secondary data was collected
from the individual listed sample firm’s annual reports
and financial statements at the 5 years period. The study
adopted a descriptive research method, it was also
arguably quantitative in nature because it majorly relied
on secondary data sources from existing published
audited financial statements of the listed manufacturing
entities for the financial years 2017 – 2021 as reported.
Financial information extracted from the audited
financial statements based on the 5 ratios of the Altman
Z-Score model were used to forecast financial distress of
the 10 manufacturing firms.
Findings: The study findings were that the level of board
independence, audit and risk committee effectiveness,
board size, and firm size barely have any significant
correlation whatsoever with financial reporting quality
and timeliness to effect change in entity performance.
Further study findings established that the model
entailing; entailing corporate governance that include;
board independence, audit and risk committee, and
board size, as well as firm size, explains timely financial
reporting to a very least extent with a coefficient of
determination value of 2.04%. Therefore it was almost
clear that certain factors seldom possessed greater
influence in timely delivery of quality financial reports
by these firms.
In contrast, operating in manufacturing, services
and technology sectors and listing in the NSE index have
a substantial positive influence on the timeliness of
reporting from small, medium to large firms.
Additional study findings were that that the model
entailing corporate governance that include; board
independence, audit and risk committee, and board size,
as well as firm size, does not significantly forecast
financial reporting quality. Final study findings were
that board size have a slim influence on timeliness and
quality reporting.
Implications for Research and Practice: This study
has majorly used secondary data to explore the findings,
empirically, primary data can also be utilized to
ascertain similar results. This can ensue additional
information or infer differences with established findings
to this particular study. The statistical analytical
techniques of the present research were multiple linear
regressions and correlation analyses which involved the
use of the Altman Z-Score model.
Keywords: Corporate governance, financial reporting
and Manufacturing firms, Nairobi Stock Exchange.
