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. 12 2024
DOI: 10.56201/jafm.v10.no12.2024.pg232.253

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Social Responsibility and Earnings Management: The Mediating Effect of Audit Committee Diversity of Listed Consumer Goods Firms in Nigeria

Onubogu Charity, Prof. Innocent A. Nwaorgu

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Abstract

The study examines social responsibility and earnings management of listed consumer goods firms in Nigeria. The study adopted the ex-post facto research design. The population of the study comprise of the 21 listed consumer goods companies on the Nigerian exchange group as at July, 2023. Using the judgmental sampling technique, 17 firms are selected as sample size for the study. Data is collected from the financial statements of the firms for a period of 10 years (2013 to 2022). The study adopts the ordinary least square method for data analysis. The study found that, social responsibility disclosure has no significant relationship with earnings persistence, and audit committee diversity in terms of gender does not significantly moderate the relationship between social responsibility disclosure and earnings persistence of listed consumer goods companies in Nigeria. Thus, it is recommended that, firstly, regulatory bodies should encourage businesses to focus on transparent financial reporting alongside social responsibility, promoting a comprehensive view of corporate performance. Secondly, while gender diversity on audit committees remains important for various reasons, this study implies that it might not directly impact the aforementioned relationship. Consequently, policymakers should prioritize broader governance aspects when assessing corporate practices and disclosures.

keywords:

Social responsibility disclosure, earnings persistence, audit committee diversity

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