Fair Value Accounting and Earnings Quality of Listed Nigerian Manufacturing Companies: The Moderating role of Board Diversity

This study examined the moderating role of female board directorship on the relationship between fair value accounting and earnings quality of Nigerian manufacturing companies. The study’s population is 33 listed non-oil manufacturing companies, out of which 18 were randomly selected based on data availability for 7 years (2017–2023). Secondary data was obtained from the published annual reports of the selected 18 manufacturing companies. Data was analysed using Panel-corrected Standard error (PCSE) estimation technique to correct heteroskedasticity and autocorrelation in the panel dataset. The results show that fair value accounting has no statistically significant effect on earnings quality. Also, the female board directorship negatively and insignificantly affects reported earnings. Besides, the female board directorship does not significantly moderate the nexus between fair value accounting and earnings quality. The study concludes that female board representation does not influence the quality of reported earnings. Manufacturing companies in Nigeria do not need female board membership to strengthen financial reporting in relation to fair value measurement and earnings quality. The study recommends that board diversity should be encouraged and attention should be paid by the female board members to other governance mechanisms rather than fair value measurement.