CORPORATE GOVERNANCE AND EARNINGS MANAGEMENT: EVIDENCE FROM NIGERIA SELECTED QUOTED FIRMS

ABSTRACT

The study examined the relationship between corporate governance and earnings management of Nigerian quoted firms.

The study “utilised descriptive statistics, correlation analysis and the ordinary least square (OLS) regression methodology to analyse the existence of relationships between corporate governance variables and earnings management. The study focused on all companies quoted on the floor of Nigerian Stock Exchange as at 31^st December, 2020 but utilised a sample of 30 quoted companies covering a period of 11 years (2010-2020).

The results from the regression analysis revealed the existence of a positive and significant relationship between managerial ownership and earnings management. Board gender diversity has a positive but a statistically insignificant relationship with earnings management among firms examined. The variable of board independence has positive and insignificant effect on earnings management among quoted firms in Nigeria.Audit committee independent has a negative but statistically insignificant influence on earnings management among quoted listed companies in Nigeria. The study recommends that the board of directors should be allowed to control up to 50% or more of shares allotted in the company, this gives them too much power and control over other shareholders which may be responsible to constrain the opportunistic behaviours exhibited by the managers in a bid to get short-term private gains