The Impact of the Ownership Structure and Board Characteristics on Earnings Management in Nigeria’s Listed Deposit Money Banks
In many countries, there are a certain number of organizations going through severe crises due to a failure in corporate governance. In this study, the main aim is to determine how the ownership structure and the characteristics of the boards of Nigeria’s listed deposit money banks (DMBs) affect agg...
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| Format: | Article |
| Language: | English |
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University of Kragujevac
2018-12-01
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| Series: | Economic Horizons |
| Subjects: | |
| Online Access: | https://horizonti.ekfak.kg.ac.rs/sites/default/files/Casopis/2018_3/EH_2018_3_en_3_JSA.pdf |
| _version_ | 1797748944967565312 |
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| author | Olubunmi Florence Osemene Joshua Solomon Adeyele Pauline Adinnu |
| author_facet | Olubunmi Florence Osemene Joshua Solomon Adeyele Pauline Adinnu |
| author_sort | Olubunmi Florence Osemene |
| collection | DOAJ |
| description | In many countries, there are a certain number of organizations going through severe crises due to a failure in corporate governance. In this study, the main aim is to determine how the ownership structure and the characteristics of the boards of Nigeria’s listed deposit money banks (DMBs) affect aggressive earnings management for a period of 5 years (2011-2016). The panel least-square method was used to analyze the data collected. The findings revealed that private, foreign and government shareholdings have a negative and significant impact on aggressive earnings management. Also, directors’ tenures status has a significant effect on aggressive earning management, while the board size, the gender and the size of the firm have no such significant effect in the period observed. Based on these findings, the study concludes that the ownership structure has a significant impact on aggressive earnings management, whereas the characteristics of the board, excluding directors’ tenures status, do not have any significant effect. Hence, the study recommends that the 10% threshold imposed by the CBN on the government shareholding should be maintained, while regulatory and supervisory agencies are advised to pay adequate attention and conduct the monitoring of the activities performed by the CEOs of the banks, especially upon expiry of the directors’ tenure, so as to protect shareholders. |
| first_indexed | 2024-03-12T16:12:13Z |
| format | Article |
| id | doaj.art-27dbb937c10447069293d659c0abbcf5 |
| institution | Directory Open Access Journal |
| issn | 1450-863X 2217-9232 |
| language | English |
| last_indexed | 2024-03-12T16:12:13Z |
| publishDate | 2018-12-01 |
| publisher | University of Kragujevac |
| record_format | Article |
| series | Economic Horizons |
| spelling | doaj.art-27dbb937c10447069293d659c0abbcf52023-08-09T12:33:08ZengUniversity of KragujevacEconomic Horizons1450-863X2217-92322018-12-0120320922010.5937/ekonhor1803215OThe Impact of the Ownership Structure and Board Characteristics on Earnings Management in Nigeria’s Listed Deposit Money BanksOlubunmi Florence Osemene0Joshua Solomon Adeyele1Pauline Adinnu2Department of Accounting, University of Ilorin, NigeriaDepartment of Actuarial Science, University of Jos, NigeriaDepartment of Accountancy, Bida Polytechnic, NigeriaIn many countries, there are a certain number of organizations going through severe crises due to a failure in corporate governance. In this study, the main aim is to determine how the ownership structure and the characteristics of the boards of Nigeria’s listed deposit money banks (DMBs) affect aggressive earnings management for a period of 5 years (2011-2016). The panel least-square method was used to analyze the data collected. The findings revealed that private, foreign and government shareholdings have a negative and significant impact on aggressive earnings management. Also, directors’ tenures status has a significant effect on aggressive earning management, while the board size, the gender and the size of the firm have no such significant effect in the period observed. Based on these findings, the study concludes that the ownership structure has a significant impact on aggressive earnings management, whereas the characteristics of the board, excluding directors’ tenures status, do not have any significant effect. Hence, the study recommends that the 10% threshold imposed by the CBN on the government shareholding should be maintained, while regulatory and supervisory agencies are advised to pay adequate attention and conduct the monitoring of the activities performed by the CEOs of the banks, especially upon expiry of the directors’ tenure, so as to protect shareholders.https://horizonti.ekfak.kg.ac.rs/sites/default/files/Casopis/2018_3/EH_2018_3_en_3_JSA.pdfcorporate governanceownership structureearnings managementboard characteristics |
| spellingShingle | Olubunmi Florence Osemene Joshua Solomon Adeyele Pauline Adinnu The Impact of the Ownership Structure and Board Characteristics on Earnings Management in Nigeria’s Listed Deposit Money Banks Economic Horizons corporate governance ownership structure earnings management board characteristics |
| title | The Impact of the Ownership Structure and Board Characteristics on Earnings Management in Nigeria’s Listed Deposit Money Banks |
| title_full | The Impact of the Ownership Structure and Board Characteristics on Earnings Management in Nigeria’s Listed Deposit Money Banks |
| title_fullStr | The Impact of the Ownership Structure and Board Characteristics on Earnings Management in Nigeria’s Listed Deposit Money Banks |
| title_full_unstemmed | The Impact of the Ownership Structure and Board Characteristics on Earnings Management in Nigeria’s Listed Deposit Money Banks |
| title_short | The Impact of the Ownership Structure and Board Characteristics on Earnings Management in Nigeria’s Listed Deposit Money Banks |
| title_sort | impact of the ownership structure and board characteristics on earnings management in nigeria s listed deposit money banks |
| topic | corporate governance ownership structure earnings management board characteristics |
| url | https://horizonti.ekfak.kg.ac.rs/sites/default/files/Casopis/2018_3/EH_2018_3_en_3_JSA.pdf |
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