Abstract

<p>The need for the current study is borne by the ever evolving business and finance landscape. As the corporate setting continues to evolve, maintaining high financial reporting standards remains a critical imperative for companies seeking sustainable profitability and long-term success. The study examines financial reporting quality and profitability of listed service companies on the Nigeria. The study adopts the x-post facto research design. Population for the study is made up of the 23 listed service companies. Using a judgmental sampling technique, the study selected 11 listed service companies. The multivariate regression technique is used to analyze data gotten from the financial statements of the companies for a period of 8 years (2015 to 2022). The study findings reveal that, earnings quality as a proxy for financial reporting quality has no significant effect on return on asset, return on equity, and return on capital employed of the companies. Thus, it is recommended that, listed service companies in Nigeria should put in place financial reporting quality mechanisms like prompt earnings announcement and more explanatory notes to enable more value relevant reporting that can stimulate investment financing by investors. This will attract more external financing that will make available funds for more profitable investment</p>