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Chief Executive Officer Characteristics and Earnings Management: Evidence from Listed Oil and Gas Companies in Nigeria

Korolo, Emmnuel Omolaye Ph.D.

Abstract

This study examined the effect of chief executive officer characteristics on earnings management among listed oil and gas companies in Nigeria. The study adopted a quantitative ex post facto research design using a balanced panel dataset of eight companies listed on the Nigerian Exchange Group over the period 2006–2024. Secondary data were obtained from audited annual reports and corporate governance disclosures and analyzed using Static Panel Estimated Generalized Least Squares . Earnings management was proxied by discretionary accruals estimated using the Modified Jones Model, while CEO characteristics were measured using CEO tenure, CEO age, CEO expertise, and CEO educational background. The findings revealed that CEO tenure, CEO age, and CEO expertise exert positive and statistically significant effects on earnings management, whereas CEO educational background has a negative and significant effect. The study concludes that CEO characteristics are important determinants of earnings management and financial reporting quality in the Nigerian oil and gas sector. The findings underscore the need for stronger corporate governance mechanisms, effective board oversight, and merit-based CEO appointments to enhance financial reporting quality. The study contributes to the corporate governance literature by providing recent evidence on the influence of CEO characteristics on earnings management in an emerging economy.

Keywords

CEO characteristics; earnings management; discretionary accruals; corporate governance; oil and gas companies; Nigeria.

References

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