Real earnings management in Nigeria -The role of Board competence and Institutional ownership of industrial goods sector.
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Date
2025
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Publisher
University of Kigali, Ruwanda.
Abstract
Due to a number of accounting scandals and financial anomalies, users of accounting
information are growing more concerned about the quality and dependability of the data in the
financial statements of well-known corporations worldwide. This is evident from the multiple
corporate accounting scandals that were publicized in the US, Europe, and Nigeria in particular.
This study evaluates the effect of board competence, institutional ownership on earning
management of listed industrial goods firms in Nigeria. The 13 listed industrial goods businesses
that were a part of the Nigerian Exchange Group (NGX) as of December 31, 2022, make up the
study’s population, and all the thirteen firms was examined in the research. Panel regression was
utilized to analyze the obtained data. The findings indicate that board competence has impact on
the earnings management of Nigerian industrial goods enterprises. At the 5% significance level,
these are represented as coefficients (3.59) with P-values (0.001). However, the P-value (0.361)
and coefficient (15.94) show that institutional ownership offers no discernible impact on
earnings management. The research came to the conclusion that actual earnings management
was impacted by board competency. However, there is little proof that real earnings management
was impacted by institutional ownership. The study's conclusion was that Nigerian industrial
products businesses ought to have additional independent directors with financial experience on
their boards.
Description
Journal of Financial and Management Sciences
Keywords
Board competence, Institutional ownership, Earnings management, Accruals.
Citation
Abogun , S.; Usman, J; Adigbole E. & Kasum A. (2025). Real earnings management in Nigeria - The role of Board competence and Real earnings management in Nigeria - The role of Board competence and Institutional ownership of industrial goods sector. Journal of Financial and Management Sciences 1 (3), 129 - 163.