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Moderating Effect of Board Gender Diversity on Audit Quality and Earnings Management of Listed Industrial Goods Companies in Nigeria

Akpegi, Patrick Onahi, Danson, Noba Price, Ikagu Friday, Akintaro, Henry

Abstract

The study examined the moderating effect of board gender diversity on the relationship between audit quality and earnings management of listed industrial goods companies in Nigeria. The study employed an ex-post facto research design using panel data from 21 companies listed on the Nigerian Exchange Group over the period 2015–2024. Data were analysed using panel regression techniques, including correlated random effects and Hausman tests, with appropriate diagnostic tests conducted to ensure robustness. The findings reveal that board gender diversity has a significant negative effect on earnings management, indicating that increased female board representation enhances financial reporting quality. The interaction results further show that board gender diversity significantly moderates the relationship between audit independence, audit tenure, and earnings management, strengthening their monitoring effects. However, the moderating effects involving auditor industry specialization and audit fees were positive, while auditor size was not statistically significant. The model demonstrates strong explanatory power and overall statistical significance. The study concludes that the effectiveness of audit quality in constraining earnings management is enhanced when supported by meaningful board gender diversity. The study recommends strengthening gender-inclusive governance structures and reinforcing audit independence to improve financial reporting credibility in Nigeria’s consumer goods sector.

Keywords

Earnings ManagementAudit QualityBoard Gender DiversityAuditor IndependenceAudit Tenure.

References

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