OWNERSHIP COMPOSITION AND ACCOUNTING CONSERVATISM IN NIGERIAN QUOTED MANUFACTURING COMPANIES

ABSTRACT

The study examined Ownership Composition and Accounting Conservatism in Nigeria quoted Companies. The study employed a sample of 36 quoted manufacturing companies in the Nigerian Stock Group that have consistently published their annual audited financial report from the period of 2012 to 2021. Secondary data was used and data collected were analyzed using descriptive statistics, correlation analysis and robust regression technique. The results showed that institutional ownership exerts a positive and significant relationship with accounting conservatism, managerial ownership exerts a negative and insignificant relationship with accounting conservatism, foreign ownership exerts a negative and insignificant relationship with accounting conservatism and block ownership exerts a negative and insignificant relationship with accounting conservatism, and the control variable, firm size and firm age exerts insignificant relationship with accounting conservatism. The study recommends that quoted manufacturing companies should engage more institutional investors for improving conservatism of accounting information for quality financial reporting. The study suggested further that other ownership compositionvariables like government ownership and family ownership might improve accounting conservatism.