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| Main Authors: | , , |
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| Format: | Recurso digital |
| Language: | |
| Published: |
Zenodo
2025
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| Online Access: | https://doi.org/10.5281/zenodo.15586356 |
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Table of Contents:
- <table style="width: 97.3518%;"> <tbody> <tr> <td style="width: 100%;"><span>The study examined the effect of corporate governance mechanisms on<br>earnings quality of manufacturing companies in Nigeria. The study<br>specifically examined the effect of board composition, audit committee<br>independence, institutional ownershipand executive compensation on<br>earnings quality of manufacturing companies in Nigeria. The study<br>adopted the Agency theory as the anchor theory whilepanel data was<br>extracted from the annual financial statements of the companies for the<br>period 2012 to 2022. Regression analysis was used for test of hypotheses.<br>The study found that: board composition significantly and positively affect<br>earnings quality of manufacturing companies in Nigeria (β=0.38, z=2.42,<br>and p=0.005); there is no significant effect of audit committee<br>independence on earnings quality of manufacturing companies in Nigeria<br>as results revealed β=-0.32, z=-0.84, and p=0.402; institutional<br>ownership has no significant effect on earnings quality of manufacturing<br>companies in Nigeria (β=0.42, z=1.02, and p=0.310); and there is<br>significant positive effect of executive compensation on earnings quality of<br>manufacturing companies in Nigeria (β=0.42, z=3.96, and p=0.000). The<br>study concluded that good corporate governance practice has a significant<br>effect in reducing earnings manipulations which by extension improves on<br>quality of earnings. Companies that have more non-executive directors in<br>their board composition and high executive compensation in terms of<br>shareholding and remuneration would have quality financial reports than<br>firms whose boards of directors do not contain reasonable number of<br>independent and directors their executive do not enjoy executive<br>compensation. It recommended thatmanufacturing companies in Nigeria<br>should ensure that more non-executive directors are included in their<br>board composition in order to enhance effective monitoring, and that;<br>managers of manufacturing and other companies should be encouraged to<br>own shares in the companies they are managing as managers with shares<br>are less susceptible to manipulative accounting practices.</span></td> </tr> </tbody> </table> <p> </p>