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Empirical Investigation of Corporate Governance and Earnings Quality of Selected Quoted Companies in Nigeria

Samuel Sunday CHARLIE, Ph.D, CNA, Jeremiah Patrick EDET, B.Sc., M.Sc., ACA & Ph.D in View

Abstract

This study was conducted to determine the influence of corporate governance on earnings quality of selected quoted companies in Nigeria. The actions of directors are directed by the Code of Corporate Governance which mandates them to perform in accordance with the interests of the shareholders. For effective compliance, the mechanisms of corporate governance should influence the attributes of performance in companies positively. This motivated the researchers to assess the direction of variables of corporate governance on earnings quality of selected quoted companies in Nigeria. The ex-post facto research design was adopted because the study was quantitative and required secondary data. The population of this study was forty (40) selected quoted companies whose shares were traded on the floor of Nigerian Exchange Group (NGX) as at 31st December, 2022. Thirty-three (33) selected quoted entities were sampled for the study purposively based on the possibility of retrieving annual reports and financial statements of entities. Panel data were collected from the annual reports and financial statements of the selected quoted companies sampled for the study. The variables of this study were Earnings Quality (EQ) and Corporate Governance (CG). The dependent variable was Earnings Quality (EQ), and the independent variable was corporate governance represented by Board Independence (BI) and Board Meeting (BM). Company Size (CS) was used as a control variable. Data were analyzed using descriptive statistics and multiple linear regression statistical tools. The pooled panel linear regression was adopted in establishing the influence of CG on EQ. From the analyses, it was observed that BI and BM had positive and significant influence on EQ of selected quoted companies in Nigeria. In line with the findings, it was concluded that corporate governance had a positive and significant influence on Earnings Quality (EQ) of selected quoted compani

Keywords

Corporate Governance1 Earnings Quality2 and Selected Quoted Companies in

References

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