IIARD International Institute of Academic Research and Development

Journal of Accounting and Financial Management (JAFM )

E-ISSN 2504-8856
P-ISSN 2695-2211
VOL. 10 NO. 8 2024
DOI: 10.56201/jafm.v10.no8.2024.pg72.95

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Effect of Ownership Syndicates on Conservatism Accounting of Quoted Consumer Goods Companies in Nigeria and Ghana

Mayah, Eunice, Ekwueme, Chika Maureen & Onuigwe, Gladys Chiebonam

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Abstract

This study investigated the effects of ownership syndicates on accounting conservatism in quoted consumer goods companies in Nigeria and Ghana, employing an ex post facto research design. The research utilized secondary data from annual reports and exchange fact books of 20 purposively sampled firms (15 from Nigeria and 5 from Ghana) over the period 2013 to 2022. Descriptive and inferential statistics were employed, including panel regression analysis to analyze the relationships. The results indicated a significant negative relationship between foreign ownership and accounting conservatism (? = -0.110, p = 0.031). Managerial ownership showed a positive but insignificant effect on accounting conservatism (? = 0.019, p = 0.928). Institutional ownership exhibited an almost negligible and statistically insignificant relationship with accounting conservatism (? = 0.000, p = 0.999). Family ownership presented a positive but insignificant correlation (? = 0.206, p = 0.051), while block ownership had a negative and insignificant relationship with accounting conservatism (? = 0.005, p = 0.973). The study recommended that regulatory bodies consider the implications of foreign ownership on financial reporting standards and practices. Future research could expand on these findings by exploring other sectors and incorporating more diverse variables.

keywords:

Ownership Syndicates, Accounting Conservatism, Foreign Ownership, Managerial

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