International Journal of Academic Accounting, Finance & Management Research (IJAAFMR)   Year: 2022 | Volume: 6 | Issue: 12 | Page No.: 12-28 Local Government Characteristics and Financial Reporting Quality: Evidence from Lagos, Nigeria Download PDF ABATA Matthew Adeolu , TIJANI Jamiu Olakunle , JIMOH-BALOGUN Ademola Abstract: Against the background of the recurring challenges revolving around accountability of local governments in Lagos, Nigeria, this study examined the effect of local government characteristics on financial reporting quality in Lagos, Nigeria. Ex post facto research design was employed, on the basis of which secondary data were gathered from the audited financial statements of fifty-seven (57) local governments and local council development areas in Lagos state. Four research objectives were specified, while four hypotheses were formulated and tested. The data collected were descriptively analysed using mean, skewness, kurtosis, while logistic regression was adopted to inferentially test the four hypotheses. Findings revealed that capital expenditures ratio have no significant effect on financial reporting quality of local governments in Lagos, Nigeria (?= -0.0006; p-value > 0.05). However, further results showed that size has significant influence on financial reporting quality of local governments in Lagos, Nigeria (?= 0.2937; p-value < 0.05). Based on these findings, the study concluded that size and wealth significantly determine the quality of financial reports presented by local governments and local council development areas in Lagos state, Nigeria. The study recommended that local governments and local council development areas are to be encouraged to increase their carrying capacities and gets bigger, as doing these would be expected to engender increasing financial reporting quality.