Financial statement disclosure on financial performance of listed manufacturing firms in Nigeria

Using the disclosure concept in accounting, this study examines the relationship between financial disclosure and the financial performance of Nigeria's publicly traded manufacturing firms. The study emphasizes the importance of firm attributes such as size, leverage, age, and institution affiliation in accounting for disclosure quality and overall firm performance. The study reaffirms that reliable and relevant financial reports help stakeholders make decisions and facilitate collaboration. Using a sample of listed manufacturing firms on the Nigerian Stock Exchange from 2014 to 2020, this study fills literature gaps by investigating internal and external variables that lead to a shift in disclosure practices, with consequences for economic stability and growth. The study looks into discretionary accrual and its impact on financial performance by using Jones' model as an examination area to determine the importance of disclosure in financial statements. Diagnostic procedures were used to validate findings, such as the absence of multicollinearity (mean VIF = 1.11), the absence of heteroscedasticity, and the accuracy of the random-effects model as demonstrated by the Hausman test (p = 0.1534). The study found that firm size (r=0.2341) positively and significantly impacts financial performance, indicating that larger firms improve governance and oversight. However, firm age (r = 0.0126) and leverage (r = -0.0273) did not show a significant relationship with financial performance, challenging the notion that these attributes inherently contribute to better financial outcomes. Institutional investors also showed a weak but significant relationship.