Professional ethics and fair presentation of financial reports in listed consumer goods companies in Nigeria

Abstract

Financial reports are essential tools for decision-making among all stakeholders, including those involved in listed Nigerian consumer goods manufacturing firms. To enable informed decisions, these reports must accurately reflect the firms' financial position and performance, ensuring transparency and objectivity. This study examined the influence of professional ethics on the fair presentation of financial reports within listed consumer goods manufacturing firms in Nigeria. A survey research design was employed for this investigation. The population comprised 486 accountants working at the corporate headquarters of seventeen (17) listed Nigerian consumer goods manufacturing companies. Validated questionnaires were distributed to a purposive sample of 255 respondents, specifically targeting senior management accountants involved in the preparation and presentation of financial reports. The reliability of the questionnaire, measured by Cronbach’s alpha, ranged from 0.72 to 0.85. The response rate was 80%. Data analysis involved both descriptive statistics and inferential analysis using multiple regression. The results indicated that professional ethics had a significant effect on the fair presentation of financial reports (Adjusted R² = 0.525, F(4, 199) = 57.027; p < 0.05). The findings suggest that professional ethics play a crucial role in enhancing the fairness and transparency of financial reporting in these firms. Based on these results, the study recommends that management of consumer goods companies should actively promote professional ethical standards among employees and ensure ongoing training and retraining on ethical practices to uphold the integrity of financial reports.