EFFECT OF BOARD DIVERSITY ON EARNINGS MANAGEMENT OF CONGLOMERATE FIRMS IN NIGERIA

Isaiah Odiba Emmanuel, Abdulmalik Abubakar Yusuf, Halima Shaibu

Abstract


There has been an increase in interest in board diversity among corporate governance scholars and practitioners. Although, significant study has been committed to corporate governance, few studies exist on board diversity and its link with earning management, especially in emerging economies like that of Nigeria. To bridge this information vacuum, this study studied the influence of board diversity on the earnings management of conglomerate corporations in Nigeria. Board diversity in this study was measured using board gender, board nationality and board education. To find out how conglomerate earnings in Nigeria were affected by factors including gender, nationality, and education of the company's directors, researchers conducted an 8-year study (2014-2021). Secondary data were obtained for the aim of the study. Multiple linear regression is performed in the research as analytical approach while data are handled using STATA statistical software. The study reveals that variety in nationality and degree can greatly lower the level of profits management in a corporation. In terms of managing earnings, gender diversity has no major influence. The study consequently suggests that conglomerate organisations in Nigeria aggressively implement more diverse boards with regard to board nationality and board education as it is connected with reduction on earnings management.


Keywords


Effect, Board Diversity, Earnings Management, Conglomerate Firms, Nigeria.

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