CEO Duality and Ownership as Determinants of Real Earnings Management of Nigerian Oil and Gas Companies
Abstract
This study investigates the extents to which chief executive officers duality and ownership determine real earnings management of listed oil and gas firms in Nigeria for a period of 10 years spanning from 2013-2022. Specifically, the study sought to answer questions related to the effect of chief executive officer duality and ownership on real earnings management. To answer the research questions, data were collected for 10 Nigerian listed oil and gas companies. The study adopted the panel data approach (panel corrected standard error fixed effect model) since the study variables exhibited both time series and cross-sectional data characteristics. Findings of the study indicated that both chief executive officer duality and ownership are major determinants of real earnings management. Hence, the study concludes that chief executive officer duality and ownership have significant influence on real earnings management. On the basis of the finding, it recommends that CEOs should not be given dual roles both as chairmen and board of directors. Also, regulatory authorities of companies should ensure that more attention is placed on CEO ownership; this is so because the more CEOs own more shares, the lesser the earnings management practices.
Keywords
CEO duality; CEO ownership structure; Earnings management; Real earnings
management
References
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