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

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.