Our Archives

Call 09159097300, or 09067754232 for any enquiries.

Project Topic:

FINANCIAL REPORTING AND PUBLIC TRUST ISSUES AND PROSPECT

Project Information:

 Format: MS WORD ::   Chapters: 1-5 ::   Pages: 68 ::   Attributes: Questionnaire, Data Analysis,abstract, table of content, references ::   2,253 people found this useful

Project Body:

ABSTRACT

The study was determined to examine financial reporting and public trust issues and prospect. The research design used descriptive and survey method of data collection to empirically ascertain financial reporting and public trust: issues and prospect. The total population comprises of 65 staff and management staff of the Rivers State ministry of finance. The research techniques used for this study is the “cross sectional approach” A total of 65 questionnaire was distributed to junior and senior staffs of the rivers State ministry of finance. The pearson product correlation coefficient was used to test the hypothesis. Findings amongst others reveals that there is a significant impact of financial reporting on public trust. Based on the Findings of the study summary, conclusion and recommendations were made that the quality of financial reporting should be increased to build the level of public trust, since the level of trust in an economy affects capital market participants, the government should make rules and regulations that will check mate financial report released to the public, the federal government and central bank should make sur companies publish the right financial statement, policy makers and ICAN should be flexible in their regulations that mandate accounting disclosures as well as investorand accounting quality should be made up to date since it is positively associated with public trust.

 

 

CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

Public trust in a country has been  shown  to  affect  its  economic  growth  and development, capital market development, government regulation and international trade (Knack and Keefer, 1997, Stulz and Williamson, 2003, Guiso, et al., 2006 and 2008).  These studies are premised on the idea that interpersonal trust affects contracting costs in an economy: greater trust enables greater economic activity that requires an agent to rely on another agent‟s future actions. In public corporations, capital market participants (investors and creditors) entrust managers with their invested capital and rely on them to create value by deploying these assets in the most productive manner available.  Periodic accounting reports are an important source of information for  capital  market  participants  to  monitor  managers‟ actions  that  affect  the  value  of  their investments.  In this study, the we posit that the level of trust in an economy affects capital market participants‟ subjective beliefs about the credibility of periodic  accounting  reports,  thereby affecting investors‟ demand for accounting disclosures.

The in formativeness of firms‟ financial reports are affected by regulations that mandate accounting disclosures as well as by investors‟ and other stakeholders‟ demand for information. Accordingly, we distinguish between firms‟ accounting quality that is influenced by regulated (mandated) reporting  requirements  and  firms‟ accounting  and  disclosure  practices  that  are affected  by managerial  choices  made  in  response  to  the  institutional  environment  within  a country.  The level of trust in an economy potentially affects both regulators‟ incentives to mandate firm disclosures and capital market participants‟ demand for accounting information.

Public trust is potentially negatively associated with financial reporting and disclosure quality  if  investors‟ demand  for  information  declines  in  their  trust  of  firm  insidersIn high trust economies, arms length investors would place a low likelihood of being cheated by firm managers or controlling owners, and therefore choose a low disclosure regime (Pinotti, 2008, and Aghion et al., 2010). The upshot being that public trust is negatively associated with both mandatory and voluntary firm accounting quality. From the forgoing therefore, the study is determined to examine the issues and prospect of financial reporting and public trust.

1.2 STATEMENT OF PROBLEMS

In high-trust economies, firms‟ managers are more likely to disclose information since they believe that investors are more likely to revise their priors in light of accounting since they view these information as credible.   Mistrust on the other hand would lead participants to disregard disclosed information thereby reducing managers‟ incentives to be forthcoming.  Further, greater trust in an financial reporting promotes the development of institutions that complement financial reporting and  disclosure and  thus increases  the returns to firms‟ reporting activities (Carlin, 2010, and Boduh-creed, 2010). Finally, higher quality financial reporting may causally increase investor trust and thus lead to a positive observed association between accounting quality and trust.

To test these competing explanations regarding the association between public trust and financial reporting, the study empirically examines the association between financial reporting and public trust: Issues and prospect.

1.3 OBJECTIVES OF THE STUDY

The main objective of the study is to examine financial reporting and public trust: issues and prospect. The specific objectives are as follows:

  1. To examine whether high quality of financial reporting increase the level of public trust.
  2. To find out whether public trust affects economic exchanges,  financing opportunities, performance and development.

iii. To examine the challenges of financial reporting and public trust in Nigeria.

  1. To examine the prospect of financial reporting and public trust in Nigeria.

1.4 RESEARCH QUESTIONS

  1. Does high quality of financial reporting increase the level of public trust.
  2. Does public trust affects economic exchanges, financing opportunities, performance and development.

iii. What are the challenges of financial reporting and public trust in Nigeria.

  1. What are the prospect of financial reporting and public trust in Nigeria.

1.5 STATEMENT OF HYPOTHESES

HO: There is no significant impact of financial reporting on public trust.

HI: There is a significant impact of financial reporting on public trust.

1.6 SIGNIFICANCE OF THE STUDY

The study examines the issues and prospect of financial reporting and public trust. The study will contribute to the growing literature on public trust.

The study will also help the government in formulating policies that can guide accounting in their financial report quality and maintain ethical standards that can build public trust in the country.

The results of this study will be of importance to related research on: (i) how trust affects economic outcomes, and (ii) how informal institutions such as social norms and culture affect accounting quality and earnings management.

Given that accounting information is used for contracting and investment decisions, the result of this study will contribute to additional channels through which trust can affect economic performance and development in a country (beyond traditional formal institutions).

1.7 SCOPE OF THE STUDY

The scope of the study covers the issues and prospect of financial reporting and public trust with special references to the Rivers State ministry of finance.

1.8 LIMITATION OF THE STUDY

Financial constraints: Financial was one of the major constraint that limited the study.  This is consequent of the fact that the researcher’s sources of financial support were not able to adequately take care of her academic financial responsibilities and the project work.

Time constraint: Another major constraint that affected this study was time. This was due to the fact that the study was conducted amidst normal academic studies.  To this end therefore, it was difficult for the researcher to meet up some of the appointments with respondents.

Unavailability of materials: Another major constraint to this study was unavailability of materials.

1.9 DEFINITION OF TERMS

Public Trust: Trust created for the promotion of public welfare and not for the benefit of one or more individuals.

Financial Reporting: Financial reporting is the process of producing statements that discloses an organization’s financial status to management, investors and the government.

Accountant: an accountant is a practitioner of accounting or accountancy which is the measurement, disclosure or provision of assurance about financial information that helps managers and investor.

Auditing:It is the Onsight verification activity, such as inspection or examination, of a process or quality system, to ensure compliance to requirements.

Audit:An audit is a systematic and independent examination o books, accounts, statutory records, documents and vouchers of an organization to ascertain how fair the financial statements as well as non-finacial disclosure present a true and fair view of the concern.

 


Get The Complete Project »

Project Department:

MORE ACCOUNTING FREE UNDERGRADUATE PROJECT TOPICS AND RESEARCH MATERIALS

Instantly Share this Project On Social Media:

CLOSELY RELATED ACCOUNTING FREE UNDERGRADUATE PROJECT TOPICS AND RESEARCH MATERIALS

AN APPRAISAL OF THE IMPLICATION OF ELECTRONIC BANKING IN NIGERIA BANKS (A CASE STUDY OF ACCESS BANK)

 Format: MS WORD ::   Chapters: 1-5 ::   Pages: 67 ::   Attributes: Secondary data, Data Analysis,Abstract  ::   14272 engagements

CHAPTER TWO REVIEW OF RELATED LITERATURE Electronic banking in Nigeria has overtime been viewed by many especially economists as having a lot of implications on the economy of Nigeria and especially...Continue reading »

A CRITICAL ANALYSIS OF THE USE OF FINANCIAL STATEMENTS IN ASSESSING THE PERFORMANCE OF AN ORGANIZATION (A CASE STUDY OF FIRST BANK NIGERIA)

 Format: MS WORD ::   Chapters: 1-5 ::   Pages: 75 ::   Attributes: Questionnaire, Data Analysis, Abstract  ::   11788 engagements

ABSTRACT The study was carried out to analyse how an organization performs making use of the financial statements with First Bank of Nigeria Plc serving as the case study. the study disclosed that th...Continue reading »

AN EVALUATION OF THE PERFORMANCE OF NIGERIAN STOCK EXCHANGE IN THE ECONOMIC DEVELOPMENT OF NIGERIA ( A CASE STUDY OF NIGERIAN STOCK EXCHANGE)

 Format: MS WORD ::   Chapters: 1-5 ::   Pages: 78 ::   Attributes: Questionnaire, Data Analysis,Abstract  ::   7210 engagements

HISTORICAL BACKGROUND OF THE NIGERIA STOCK EXCHANGE IN THE ECONOMIC DEVELOPMENT OF NIGERIAN. The nigeria stock excahnge denoted by NSE is a government establishment where stocks are traded on a daill...Continue reading »

APPLICATION OF BUDGETS AND BUDGETARY CONTROL MEASURES IN A NON-PROFIT ORGANIZATION: A CASE STUDY OF APOSTOLIC CHURCH, DELTA

 Format: MS WORD ::   Chapters: 1-5 ::   Pages: 76 ::   Attributes: Questionnaire, Data Analysis,Abstract  ::   8137 engagements

2.1 CONCEPTUAL FRAMEWORK A budget is can be defined by accountants as “a planned outcome to be generated and for the expenditure to ensure during that period and the capital to be employed to a...Continue reading »

ASSESSING BOOK-KEEPING PRACTICES OF SMALL AND MEDIUM SCALE ENTERPRISES IN CALABAR LOCAL GOVERNMENT AREA

 Format: MS WORD ::   Chapters: 1-5 ::   Pages: 69 ::   Attributes: Questionnaire, Data Analysis,Abstract  ::   7376 engagements

ABSTRACT The economy of Nigeria cannot function properly or thrive without the micro, small and medium scale enterprises (SMEs). These small scale enterprises cannot function properly if they are not ...Continue reading »

ASSESSMENT OF ADEQUATE RISK RECOGNITION AND MANAGEMENT IN NIGERIAN INSURANCE COMPANIES (A CASE STUDY OF UNION ASSURANCE COMPANY, UYO)

 Format: MS WORD ::   Chapters: 1-5 ::   Pages: 86 ::   Attributes: Questionnaire, Data Analysis  ::   6057 engagements

THE CONCEPT OF RISK Risk has been the subject of study by different scholars over the years with several meaning and definitions. But the most accepted definitions are that of J.E Banister and P.A Baw...Continue reading »

What are you looking for today?

TESTIMONIALS:

  • 1. Jayone from FPA said " I had a wonderful experience using UniProjectMaterials,though they did not deliver the material on time, but the content had good quality. I recommend UniProjectMaterials for any project research work.".
    Rating: Very Good
  • 2. Mugisha R from B.U, UGANDA said "Wow, this is great, your materials has helped me alot. Many blessings. I will inform my friends. Thanks. ".
    Rating: Very Good
  • 3. Nwachukwu Ruth Chinyerr from Michael okpara university of Agriculture,umudike said "I really appreciate this. Materials like this are good guides to writing a researchable project.".
    Rating: Good
  • 4. Ibrahim Salama from Kaduna said "Thanks You So Much Sir We Appreciate ".
    Rating: Excellent
  • 5. Ibrahim Salama from Kaduna said "Thanks You So Much Sir We Appreciate ".
    Rating: Excellent
  • 6. Mohammed A.B from Veterinary Laboratory, Zanzibar ,Tanzania said "You are doing good job to assists in research. God bless you.".
    Rating: Very Good

Paper Information

Format:ms word
Chapter:1-5
Pages:68
Attribute:Questionnaire, Data Analysis,abstract, table of content, references
Price:₦3,000
Get The Complete Project »

Best Selling Projects

Our Archives