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The effects of corporate governance mechanisms on earnings management of listed firms in Nigeria

Uwuigbe , U. and Peter, Daramola Sunday and Oyeniyi, Anjolaoluwa (2014) The effects of corporate governance mechanisms on earnings management of listed firms in Nigeria. Accounting and Management Information Systems, 13 (1). pp. 159-174.

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This study basically examined the effects of corporate governance mechanism on earnings management in Nigeria. To achieve the objectives of this study, a total of 40 listed firms in the Nigerian stock exchange market were selected and analyzed for this study using the judgmental sampling technique. The choice of the selected firms arises based on the nature and extent of corporate financial failures and scandals that has been withnessed in the industry overtime. Also, the corporate annual reports for the period 2007-2011 were used for the study. The regression analysis method was employed as a statistical technique for analysing the data collected from the annual report of the selected firms. Findings from the study revealed that while board size and board independence have a significant negative impact on earnings management (proxied by discretionary accruals); On the other hand, CEO duality had a significant positive impact on earnings management for the sampled firms in Nigeria. Hence the paper concludes that firms with larger boards and diverse knowledge are more likely to be more effective in constraining earnings management than smaller boards since they are likely to have more independent directors with more corporate or financial expertise.

Item Type: Article
Uncontrolled Keywords: corporate governance, earnings management, ceo duality, board size, discretionary accruals
Subjects: H Social Sciences > H Social Sciences (General)
H Social Sciences > HF Commerce > HF5601 Accounting
Divisions: Faculty of Law, Arts and Social Sciences > School of Social Sciences
Depositing User: Mrs Hannah Akinwumi
Date Deposited: 15 May 2017 11:57
Last Modified: 15 May 2017 11:57

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