Corporate governance and real earnings management in Nigerian financial institutions: the moderating effect of independent directors

The need for an improved quality of financial reports become a key challenge for investors and other stakeholders due to financial scandal being witnessed in Nigerian financial institutions. Related to that issue, this study examines whether corporate governance mechanisms (board and ownership struc...

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Main Author:	Abubakar, Ibrahim Adamu
Format:	Thesis
Language:	eng eng eng eng
Published:	2019
Subjects:	HG Finance
Online Access:	https://etd.uum.edu.my/9310/1/Depositpermission-not%20allow_s95469.pdf https://etd.uum.edu.my/9310/2/s95469_01.pdf https://etd.uum.edu.my/9310/3/s95469_02.pdf https://etd.uum.edu.my/9310/4/s95469_references.docx
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id	my-uum-etd.9310
record_format	uketd_dc
spelling	my-uum-etd.93102022-04-24T01:30:33Z Corporate governance and real earnings management in Nigerian financial institutions: the moderating effect of independent directors 2019 Abubakar, Ibrahim Adamu Ishak, Rokiah Chandren, Sitraselvi Tunku Puteri Intan Safinaz School of Accountancy (TISSA) Tunku Puteri Intan Safinaz School of Accountancy (TISSA) HG Finance The need for an improved quality of financial reports become a key challenge for investors and other stakeholders due to financial scandal being witnessed in Nigerian financial institutions. Related to that issue, this study examines whether corporate governance mechanisms (board and ownership structure) have an influence towards real earnings management (REM) practices in Nigerian financial institutions. In addition, the study also examines whether independent directors could moderate the relationship between board structure and ownership structure with REM in the Nigerian financial institutions. The unit of analysis of this study is 45 financial institutions listed in the Nigerian Stock Exchange for the period 2011 to 2016. Data of board structure (size, meeting frequency, board member expertise, female director, CEO tenure, CEO education level and CEO duality) and ownership structure (block ownership, foreign ownership, CEO ownership, and managerial ownership) are used to examine their relationship with REM. Using panel data, the multiple regression analysis is utilised to identify the relationship between corporate governance mechanisms with REM. The result displays a significant negative relationship between female directors and block ownership with REM. However, there is a significant positive relationship between board meeting, CEO education level, foreign ownership and independent directors with REM which might be due to insufficient information on the new REM technique within financial institutions in Nigerian. Meanwhile, independent directors significantly moderate the negative relationship between board meeting frequency, CEO education level and foreign ownership with REM. Nevertheless, the independent director's influence is found to be significant and positively moderate the relationship between female directors and block ownership with REM. The results have implication to regulators, investors, policy makers and other stakeholders, as the findings of this study recognise the important role played by both board and ownership structure in enhancing the quality of financial reports. 2019 Thesis https://etd.uum.edu.my/9310/ https://etd.uum.edu.my/9310/1/Depositpermission-not%20allow_s95469.pdf text eng staffonly https://etd.uum.edu.my/9310/2/s95469_01.pdf text eng staffonly https://etd.uum.edu.my/9310/3/s95469_02.pdf text eng staffonly https://etd.uum.edu.my/9310/4/s95469_references.docx text eng staffonly other doctoral Universiti Utara Malaysia
institution	Universiti Utara Malaysia
collection	UUM ETD
language	eng eng eng eng
advisor	Ishak, Rokiah Chandren, Sitraselvi
topic	HG Finance
spellingShingle	HG Finance Abubakar, Ibrahim Adamu Corporate governance and real earnings management in Nigerian financial institutions: the moderating effect of independent directors
description	The need for an improved quality of financial reports become a key challenge for investors and other stakeholders due to financial scandal being witnessed in Nigerian financial institutions. Related to that issue, this study examines whether corporate governance mechanisms (board and ownership structure) have an influence towards real earnings management (REM) practices in Nigerian financial institutions. In addition, the study also examines whether independent directors could moderate the relationship between board structure and ownership structure with REM in the Nigerian financial institutions. The unit of analysis of this study is 45 financial institutions listed in the Nigerian Stock Exchange for the period 2011 to 2016. Data of board structure (size, meeting frequency, board member expertise, female director, CEO tenure, CEO education level and CEO duality) and ownership structure (block ownership, foreign ownership, CEO ownership, and managerial ownership) are used to examine their relationship with REM. Using panel data, the multiple regression analysis is utilised to identify the relationship between corporate governance mechanisms with REM. The result displays a significant negative relationship between female directors and block ownership with REM. However, there is a significant positive relationship between board meeting, CEO education level, foreign ownership and independent directors with REM which might be due to insufficient information on the new REM technique within financial institutions in Nigerian. Meanwhile, independent directors significantly moderate the negative relationship between board meeting frequency, CEO education level and foreign ownership with REM. Nevertheless, the independent director's influence is found to be significant and positively moderate the relationship between female directors and block ownership with REM. The results have implication to regulators, investors, policy makers and other stakeholders, as the findings of this study recognise the important role played by both board and ownership structure in enhancing the quality of financial reports.
format	Thesis
qualification_name	other
qualification_level	Doctorate
author	Abubakar, Ibrahim Adamu
author_facet	Abubakar, Ibrahim Adamu
author_sort	Abubakar, Ibrahim Adamu
title	Corporate governance and real earnings management in Nigerian financial institutions: the moderating effect of independent directors
title_short	Corporate governance and real earnings management in Nigerian financial institutions: the moderating effect of independent directors
title_full	Corporate governance and real earnings management in Nigerian financial institutions: the moderating effect of independent directors
title_fullStr	Corporate governance and real earnings management in Nigerian financial institutions: the moderating effect of independent directors
title_full_unstemmed	Corporate governance and real earnings management in Nigerian financial institutions: the moderating effect of independent directors
title_sort	corporate governance and real earnings management in nigerian financial institutions: the moderating effect of independent directors
granting_institution	Universiti Utara Malaysia
granting_department	Tunku Puteri Intan Safinaz School of Accountancy (TISSA)
publishDate	2019
url	https://etd.uum.edu.my/9310/1/Depositpermission-not%20allow_s95469.pdf https://etd.uum.edu.my/9310/2/s95469_01.pdf https://etd.uum.edu.my/9310/3/s95469_02.pdf https://etd.uum.edu.my/9310/4/s95469_references.docx
_version_	1747828569676972032

Corporate governance and real earnings management in Nigerian financial institutions: the moderating effect of independent directors

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