THE DETERMINANTS OF ACCOUNTING CONSERVATIVE IN NIGERIAN QUOTED INSURANCE COMPANIES

ABSTRACT

This study examined investigated accounting conservatism in Nigerian quoted firms. In light of empirical review and other observations, a number of knowledge gaps were discovered concerning the relationship between managerial ownership, board size, leverage, firm size and accounting conservatism. Therefore, to fill up these knowledge gaps, this research work empirically investigated the determinants of accounting conservatism using a sample size of ten (10) insurance companies, out of the twenty (20) insurance companies as its population, quoted on the Nigerian Stock Exchange for a period of five years (2019 – 2023). From using the Panel Least Square (PLS) regression technique alongside multiple regression model and with the aid of necessary computer software, the empirical findings revealed that there is a significant relationship between managerial ownership, leverage, firm size and accounting conservatism while board size does not have any statistically significant relationship with accounting conservatism among listed insurance companies for the period under review. The study recommends that in order to increase accounting conservatism and enjoy the benefits there in, companies should dilute their shareholdings through managerial ownership, encourage more debt financing and financial reporting council and other influential allied bodies should provide regulations that would reduce the opportunistic behavior of management, to manipulate financial information for their selfish interest against their fiduciary duties as agents, by encouraging the practice of accounting conservatism