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Corporate Board Attributes And Earnings Management In Nigerian Banking Sector

Author

Listed:
  • Sunday Olugboyega Kajola

    (Senior Lecturer, Department of Accounting,Federal University of Agriculture, Abeokuta, Nigeria)

  • Wasiu Abiodun Sanyaolu

    (Lecturer, Department of Accounting, Dominican University, Ibadan, Nigeria)

  • Abiola Akanbi Tonade

    (Senior Lecturer, Department of Accounting, Crescent University, Abeokuta, Nigeria)

  • Adekunle Adeyemi

    (Senior Lecturer, Department of Accounting, Olabisi Onabanjo University, Ago-Iwoye, Nigeria)

Abstract

Every business entity has a common goal of achieving sustainable development, particularly in the areas of growth and profitability indices. Earnings manipulation by corporate managers may hinder the attainment of this lofty target. The study examined the relationship between corporate board attributes and earnings management in Nigerian banks for the period 2009-2018. The dependent variable (earnings management), was derived using modified Jones model"™s discretionary accruals, while four corporate board attributes (size, independence, gender diversity and board meetings) served as independent variable. The Random effect generalised least square regression results reveal a negative and significant relationship between board size, board independence and earnings management. Board gender diversity and board meetings, however, have no significant association with earnings management. It is recommended that corporate governance legislation should support large number of directors (subject to a manageable size) and more of external directors sitting on corporate boards.

Suggested Citation

  • Sunday Olugboyega Kajola & Wasiu Abiodun Sanyaolu & Abiola Akanbi Tonade & Adekunle Adeyemi, 2020. "Corporate Board Attributes And Earnings Management In Nigerian Banking Sector," Management Strategies Journal, Constantin Brancoveanu University, vol. 47(1), pages 22-35.
    • Handle: RePEc:brc:journl:v:47:y:2020:i:1:p:22-35
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    References listed on IDEAS

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