ABSTRACT

This study was necessitated by Effective Financial Reporting vacuum • existing among reporting firms as well as high level of influence exerted by the management of organization in the preparation of financial statements. Also, the need for this study became inherent, given the fact that owners of companies are not involved in the day to day running of the business, and to the need to explore an effective measure to appraise the management of business firms on the effectiveness and efficiency in the allocation of resources in their care became more pronounced. Problems encountered include; inadequate disclosure of financial information by the management of corporate firms. Inconsistency in the accounting measurement systems adopted by management of corporate firms, and lack of good corporate governance among others. In an attempt to focus this study, two hypotheses were formulated and questionnaire was utilized for the purpose of procuring relevant data to test the hypotheses formulated. There was an extensive review of expert's opinion and contribution to compare and contrast the research findings. Methodologically, the study covered 600 employees of PZ Industries, Aba. On the basis ofjudgemental sampling technique, 20% percent of the population which is 120 people formed the sample. The data obtained were statistically analyzed using the simple percentage method and the hypotheses were tested using the chi-square test of statistic at 0.05 level of significance. On the basis of the analysis and tests, the following findings were made;(i) Financial reporting serves as a measure for evaluating management performance, (ii)Inadequate of financial information has significant impact on management performance. The above findings have implication for users and preparers of financial statement and upon which recommendations have been made on how to improve financial reporting effectiveness. In addition, some suggestions for furl her research have been incorporated In the study.