Corporate Governance and Earnings Management of Consumer Goods Manufacturing Firms in Nigeria
- Post by: airjournals
- November 20, 2022
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The study investigated effect of corporate governance on earnings management of listed consumer goods manufacturing firms in Nigeria. It examined how corporate governance mechanisms of board composition, board size and audit committee size helped to control earnings management which was proxied by discretionary accruals, of consumer goods manufacturing firms in Nigeria. Secondary data obtained from the annual financial reports of six manufacturing firms in Nigeria from 2011 to 2020 were used for the study. Multiple Regression analysis was employed to analyze the data. The findings of the study revealed that board composition and audit committee size have negative and significant effect on the discretionary accruals of manufacturing firms in Nigeria while board size has a positive and non-significant effect on discretionary accruals of manufacturing firms in Nigeria. The study recommended that board composition should comprise higher number of non-executive directors and that audit committee size should be robust enough to accommodate more experts in the committee to be able to carry out their duties efficiently in order to combat earnings management in the manufacturing firms in Nigeria.
Keywords: Corporate Governance; Earnings Management of Consumer Goods; Manufacturing Firms
Iloeje, Jane Binyelum1, Prof. Okwo, I. M.2 and Ven. Prof. Ubesie, M.C.3