BOARD INDEPENDENCE, AUDIT EFFECTIVENESS AND THE QUALITY OF REPORTED EARNINGS IN THE NIGERIAN CONSUMER GOODS FIRMS
This paper studied the link of board independence, audit effectiveness and the quality of reported earnings in Nigeria. Using convenient sampling, 7 consumer-goods firms quoted in the Nigerian stock exchange (NSE) from 2016 to 2020 (5 years) were used in conducting the research. The data source was...
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| Format: | Article |
| Language: | English |
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Department of Accounting and Finance, Federal University Gusau
2022-10-01
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| Series: | Gusau Journal of Accounting and Finance |
| Subjects: | |
| Online Access: | https://journals.gujaf.com.ng/index.php/gujaf/article/view/188 |
| _version_ | 1797827829546614784 |
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| author | Misbahu, Abubakar Muhammad Isah Shittu |
| author_facet | Misbahu, Abubakar Muhammad Isah Shittu |
| author_sort | Misbahu, Abubakar Muhammad |
| collection | DOAJ |
| description |
This paper studied the link of board independence, audit effectiveness and the quality of reported earnings in Nigeria. Using convenient sampling, 7 consumer-goods firms quoted in the Nigerian stock exchange (NSE) from 2016 to 2020 (5 years) were used in conducting the research. The data source was primarily obtained from firm’s annual report and analyzed by using Random Effect GLS in STATA 14. The findings show that board independence and expertise are statistically significant in affecting the quality of reported earnings. The result found board independence and audit expertise to be negatively affecting earnings quality in the Nigerian consumer goods firms. Considering the fact that the results found the characteristics of firms board – independence and expertise - to be significant in affecting earnings quality, the study recommended that the financial users should not over rely and have absolute confidence in using financial report. The monitoring mechanisms for shielding financial report may not be effective, and the final report can mislead the stakeholders in their various decisions. Thus, the regulatory bodies should focus more in revising it guides that will improve quality of earnings to restore stakeholder’s confidence in using financial reports.
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| first_indexed | 2024-04-09T12:54:38Z |
| format | Article |
| id | doaj.art-3a9bf54d21124ca3beecdf893ef8f1c2 |
| institution | Directory Open Access Journal |
| issn | 2756-665X 2756-6897 |
| language | English |
| last_indexed | 2024-04-09T12:54:38Z |
| publishDate | 2022-10-01 |
| publisher | Department of Accounting and Finance, Federal University Gusau |
| record_format | Article |
| series | Gusau Journal of Accounting and Finance |
| spelling | doaj.art-3a9bf54d21124ca3beecdf893ef8f1c22023-05-13T23:51:33ZengDepartment of Accounting and Finance, Federal University GusauGusau Journal of Accounting and Finance2756-665X2756-68972022-10-013310.57233/gujaf.v3i3.188BOARD INDEPENDENCE, AUDIT EFFECTIVENESS AND THE QUALITY OF REPORTED EARNINGS IN THE NIGERIAN CONSUMER GOODS FIRMSMisbahu, Abubakar Muhammad0Isah Shittu1Federal Polytechnic, KaltungoAhmadu Bello University Zaria This paper studied the link of board independence, audit effectiveness and the quality of reported earnings in Nigeria. Using convenient sampling, 7 consumer-goods firms quoted in the Nigerian stock exchange (NSE) from 2016 to 2020 (5 years) were used in conducting the research. The data source was primarily obtained from firm’s annual report and analyzed by using Random Effect GLS in STATA 14. The findings show that board independence and expertise are statistically significant in affecting the quality of reported earnings. The result found board independence and audit expertise to be negatively affecting earnings quality in the Nigerian consumer goods firms. Considering the fact that the results found the characteristics of firms board – independence and expertise - to be significant in affecting earnings quality, the study recommended that the financial users should not over rely and have absolute confidence in using financial report. The monitoring mechanisms for shielding financial report may not be effective, and the final report can mislead the stakeholders in their various decisions. Thus, the regulatory bodies should focus more in revising it guides that will improve quality of earnings to restore stakeholder’s confidence in using financial reports. https://journals.gujaf.com.ng/index.php/gujaf/article/view/188Earnings QualityEarnings PersistenceBoard IndependenceAudit Effectiveness |
| spellingShingle | Misbahu, Abubakar Muhammad Isah Shittu BOARD INDEPENDENCE, AUDIT EFFECTIVENESS AND THE QUALITY OF REPORTED EARNINGS IN THE NIGERIAN CONSUMER GOODS FIRMS Gusau Journal of Accounting and Finance Earnings Quality Earnings Persistence Board Independence Audit Effectiveness |
| title | BOARD INDEPENDENCE, AUDIT EFFECTIVENESS AND THE QUALITY OF REPORTED EARNINGS IN THE NIGERIAN CONSUMER GOODS FIRMS |
| title_full | BOARD INDEPENDENCE, AUDIT EFFECTIVENESS AND THE QUALITY OF REPORTED EARNINGS IN THE NIGERIAN CONSUMER GOODS FIRMS |
| title_fullStr | BOARD INDEPENDENCE, AUDIT EFFECTIVENESS AND THE QUALITY OF REPORTED EARNINGS IN THE NIGERIAN CONSUMER GOODS FIRMS |
| title_full_unstemmed | BOARD INDEPENDENCE, AUDIT EFFECTIVENESS AND THE QUALITY OF REPORTED EARNINGS IN THE NIGERIAN CONSUMER GOODS FIRMS |
| title_short | BOARD INDEPENDENCE, AUDIT EFFECTIVENESS AND THE QUALITY OF REPORTED EARNINGS IN THE NIGERIAN CONSUMER GOODS FIRMS |
| title_sort | board independence audit effectiveness and the quality of reported earnings in the nigerian consumer goods firms |
| topic | Earnings Quality Earnings Persistence Board Independence Audit Effectiveness |
| url | https://journals.gujaf.com.ng/index.php/gujaf/article/view/188 |
| work_keys_str_mv | AT misbahuabubakarmuhammad boardindependenceauditeffectivenessandthequalityofreportedearningsinthenigerianconsumergoodsfirms AT isahshittu boardindependenceauditeffectivenessandthequalityofreportedearningsinthenigerianconsumergoodsfirms |