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CEO Attributes and Earnings Management of Listed Insurance Firms in Nigeria Moderated by Board Gender Diversity

Author

Listed:
  • Sadiq Ishola Ibrahim

    (Nigeria Defence Academy, Nigeria)

  • Onipe Adabenege Yahaya

    (Nigeria Defence Academy, Nigeria)

  • Marvis Irom Irom

    (Nigeria Defence Academy, Nigeria)

Abstract

This study examines the moderating effect of board gender diversity on the impact of CEO attributes on earnings management of listed insurance firms in Nigeria over a ten-year period (2014–2023). The study adopted an ex-post facto and correlational research design. The population comprised twenty-seven (27) insurance firms listed on the Nigerian Exchange Group as of December 31, 2023, and a sample of twenty (20) firms was selected. A panel of multiple regression techniques was employed for data analysis. Findings from the first model reveal that CEO nationality and experience have a statistically insignificant positive relationship with earnings management, while CEO tenure shows a significant positive association, suggesting that longer-tenured CEOs may engage in greater manipulation of financial reports. The study also finds that board gender diversity significantly reduces earnings management, highlighting the role of female representation in promoting financial transparency. Additionally, firm size negatively influences earnings management, while leverage and profitability show no significant effect. In the second model, moderation analysis reveals that board gender diversity significantly weakens the positive relationship between CEO nationality and earnings management, suggesting that diverse boards enhance oversight and ethical reporting. Similarly, gender diversity significantly moderates the effect of CEO tenure but not experience. The combined model accounts for approximately 44% of the variation in earnings management. These findings support agency theory and upper echelons theory by emphasizing the strategic role of leadership characteristics and board composition in curbing financial manipulation. The key findings of the study suggest that the presence of women on boards has an effective monitoring role. The results revealed a significant negative effect of board gender diversity on the level of earnings management practices. Further recommend regulators should closely ensure that companies comply with the recommendations of the NCCG 2018 on gender diversity.

Suggested Citation

  • Sadiq Ishola Ibrahim & Onipe Adabenege Yahaya & Marvis Irom Irom, 2025. "CEO Attributes and Earnings Management of Listed Insurance Firms in Nigeria Moderated by Board Gender Diversity," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 9(14), pages 1852-1877, August.
    • Handle: RePEc:bcp:journl:v:9:y:2025:issue-14:p:1852-1877
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