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Audit Quality, Audit Report Lag and Earnings Management of Listed Non-Financial Firms in Nigeria: The Moderating Role of Board Gender Diversity

Akpandem, Helina Ime Eno G. Ukpong PhD Emmanuel Okon Emenji PhD, and Uwem E. Uwah PhD

Abstract

This study investigates the effect of audit quality on earnings management of listed non- financial firms in Nigeria, with board gender diversity as a moderating variable. Audit quality was measured using audit committee meeting frequency, audit report lag, and auditor’s opinion type, while earnings management was captured using the Modified Jones Model. The research design adopted in this study was ex post facto, secondary data were used and the population of study was 100 listed industrial goods companies in Nigeria and 64 were purposively selected as the sample size. The data were analyzed using pooled ordinary least square regression and the statistical package employed was STATA 17. Using panel data analysis, the study found that audit committee meeting (? = -0.204, p = 0.028), audit report lag (? = -0.192, p = 0.043), and auditor’s opinion type g (? = -0.212, p = 0.001) significantly reduce earnings management. audit committee meeting frequency, and auditor’s opinion type were not significant. Additionally, board gender diversity significantly moderates the relationship between audit quality and earnings management, enhancing the constraining effect of audit committee meeting frequency, firm size, and report timeliness. The findings highlight the critical role of high-quality audits and gender-diverse boards in promoting transparent financial reporting and reducing earnings manipulation among Nigerian non-financial firms.

References

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