CORPORATE BOARD ATTRIBUTES AND REAL EARNINGS MANAGEMENT OF LISTED FINANCIAL INSTITUTIONS IN NIGERIA

Abstract

The study sought to assess the effect of Corporate Board Attributes’ Variables (Board Composition) on Real Earnings Management of listed financial institutions in Nigeria. The expo- facto research design was adopted with reliance on secondary data from annual reports of the listed firms. Simple random sampling technique was employed in selecting 31 firms out of 57 firms for 2014-2023 financial years. In achieving the objective of the study, three methods of panel regression estimation were used which are pool, fixed effect and random effect by Hausman test. The analysis was done using E-views 10. The finding disclosed that board composition has no significant effect on real earnings management. The study concluded that the board is a corporate governance mechanism that reduces earnings manipulation. The study therefore, recommended that there is need for effective corporate governance practices in financial institutions in Nigeria in order to contribute towards effective and efficient real earnings management and avert possible collapse of financial institutions in Nigeria. Finally the regulatory authorities like Security and Exchange Commission (SEC) and Nigerian Stock Exchange (NSE) should enforce strict compliance with corporate governance best practices.