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Chief Executive Officer’s Characteristics (CEO) and Earnings Management Practices of Listed Consumer Goods Companies in Nigeria

Korolo, Emmnuel Omolaye PhD

Abstract

This study examines the influence of chief executive characteristics on earnings management in 22 consumer goods firms listed on the Nigerian Exchange Group (NGX) from 2005 to 2023. Using secondary data and panel Estimated Generalized Least Squares (EGLS) regression, the results show that CEO age has a positive and significant effect, indicating that older CEOs are more likely to engage in earnings management. CEO tenure is negative and significant, suggesting that longer-serving CEOs reduce such practices. CEO gender is positive but insignificant, implying no meaningful influence, while CEO financial expertise is negative but insignificant, showing limited deterrence against earnings manipulation. The findings suggest that demographic and professional traits influence earnings management to varying degrees. The study recommends appointing younger CEOs, retaining experienced ones, and further exploring the unexpected effects of gender and financial expertise.

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