Research Article

BOARD CHARACTERISTICS AND EARNINGS MANAGEMENT OF LISTED OIL AND GAS FIRMS IN NIGERIA

Ibrahim Ahmad Tijjani1*, Muhammad Liman Muhammad2, Okpanachi Joshua3, Murtala Abdullahi4
1 Department of Accounting, Nigerian Defence Academy, Kaduna
2 Department of Accounting, Bayero University, Kano
3 Department of Accounting Faculty of Arts and Social Sciences Nigerian Defence Academy, Kaduna - Nigeria
4 Department of Accounting, Faculty of Administration, Ahmadu Bello University Zaria
* Corresponding author: atibrahim1979@gmail.com
Published: Dec, 2015
Pages: 176-191
Views: 31
Downloads: 27

Abstract

This paper investigates the relationship between board characteristics and earnings management of listed oil and gas firms in Nigeria for the period 2007 to 2014. Data was obtained from a sample of seven firms out of the population of nine firms through their annual report and accounts. Board characteristics as an independent variable was proxied by board size, board composition, foreign directors and women directors, while the residuals from the modified Jones Model by Dechow et al (1995) was used to represent earnings management. The study adopted ordinary least square multiple regression technique in analyzing data. The findings revealed that board size and board composition have insignificant impact on earnings management, while foreign directors and women directors have negative significant impact on earnings management of Nigerian listed oil and gas firms. It is recommended that Nigerian listed oil and gas Firms should have more proportion of foreign and women directors in their board of directors’ membership and the proportion of non-executive directors in their firms’ board of directors membership should be reduce in order to control the level of earnings management practice by managers.

Keywords

Board Size and Composition Foreign and Women Directors and Earnings Management

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How to Cite

Tijjani, I. A., Muhammad, M. L., Joshua, O., & Abdullahi, M. (2015). BOARD CHARACTERISTICS AND EARNINGS MANAGEMENT OF LISTED OIL AND GAS FIRMS IN NIGERIA. Nigerian Journal of Accounting Research, 11(2), 176-191.

I. A. Tijjani, M. L. Muhammad, O. Joshua, and M. Abdullahi, "BOARD CHARACTERISTICS AND EARNINGS MANAGEMENT OF LISTED OIL AND GAS FIRMS IN NIGERIA," Nigerian Journal of Accounting Research, vol. 11, no. 2, pp. 176-191, December 2015.

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