Earnings Management and Board Structure: Evidence From Nigeria
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The board structure of an organization gives an overview of the standard of such organization, which also influences its public
image. This study attempts to evaluate the role board structure plays in curtailing earnings management practices in Nigerian
companies. This study sampled the data of 137 quoted companies in Nigeria for a period of 8 years (2003-2010). Earnings
management was measured using the magnitude of the discretionary accruals as estimated by the performance matched
modified Jones model. The ordinary least squares (OLS) regression technique was used to measure the research model as
well as the Pearson moment correlation coefficient. The study shows that there is a significant relationship between board
structure and earnings management practices in Nigeria. The study shows that there is a negative significant relationship
between board size, gender, and board composition with earnings management; also, there is a positive significant relationship
between board meeting and earnings management practices in Nigeria. There is a positive nonsignificant relationship between
the presence of a remuneration committee and the dualization of CEO and chairman positions with earnings management
practices in Nigeria. This study recommends that regulators at all levels should enforce the preparation and publication of
financial reports by companies operating in Nigeria.
Keywords
HF5601 Accounting