– Board Characteristics and Earnings Management of Listed Foods and Beverages Firms in Nigeria –

Download Board Characteristics and Earnings Management of Listed Foods and Beverages Firms in Nigeria project materials: This project material is ready for students who are in need of it to aid their research.


As a response to some financial scandals and corporate failures in Nigeria and around the globe which are linked to earnings management, certain characteristics of Board of Directors that can improve their monitoring function are suggested in the literature as corporate governance mechanisms.

Thus, the study concentrated on three board characteristics’ proxies, namely: Board Competency, and Gender Mix and their relationships with earnings management (because, they have not yet been studied extensively in Nigeria).

Therefore, the study investigated the , frequency of Board Meetings and Gender Mix on Earnings Management (in the context of agency relation) of listed foods and beverages firms in Nigeria from 2007 to 2013.

The estimation of discretionary accruals (proxy for Earnings Management) is by using modified Jones (1991) model.

The sample size of the population is nine (9) firms. Both correlational and ex-post factors research design were used.

A was employed to determine the impact of Board Characteristics on Earnings Management. The result was interpreted using fixed effect- least square dummy variables.

The results reveal that Board Competency has no significant impact on Earnings Management. The impact of frequency of Board Meetings and Gender Mix on Earnings Management were however found to be negative and statistically significant.


 Background to the Study

Earning is one of the most important . This is because, users of financial statements mostly focus on the before looking at other variables.

Earnings represent the image of a company on the eyes of many investors and other financial statements‟ users for decision-making purposes.

Earnings indicate the extent to which a company has engaged in value added activities. Therefore, increase in earnings represents an increase in company‟s value, while decrease in earnings signals a decrease in that value (Lev, 1989).

Accounting deals with measurement and communication of economic information that involves the determination of net income (accounting earnings).

Accounting‟s earnings serve as a major constituent of corporate information required in the capital market for assessing firm performance and for stock valuation (Musa, Ibikunle & Oba, 2013).


Agrawal, A., & Chadha, S. (2005). Corporate governance and accounting scandals. Journal of Law and Economics, 48(2), 371-406.

Akenbor, C. O., & Ibanichuka, E. A. L. (2012). Creative accounting practices in Nigeria banks. An International Multidisciplinary Journal, Ethiopia, 6(3).

Bala, H., & Gugong, B. K. (2015). Board characteristics and earnings management of listed food and beverages firms in Nigeria. European journal of Accounting, Auditing and Financial Research, 3 (8), 25-41

Bartov, E., Givoly, D., & Hayn, C. (2001). The rewards to meeting or beating earnings.

Bello, A., & Yero, J. I. (2011). Debt reliance and earnings management in the listed conglomerates. Nigerian Journal of Accounting Research, Ahmadu Bello University, Zaria, Nigeria, 7(2).

Bertrand, M., & Mullainathan. S. (2000). Enjoying the quiet life? Managerial behaviour following anti-takeover legislation. MIT, Working Paper.

Brennan, M. J. (1995). Corporate finance over past 25 years. Financial Management, 24(2) 9-22.

By admin

Leave a Reply

Your email address will not be published. Required fields are marked *