Research Article

CORPORATE GOVERNANCE AND PRE-ADJUSTED FINANCIAL PERFORMANCE: EVIDENCE FROM LISTED MANUFACTURING FIRMS IN NIGERIA

Abubakar Ahmed1*, Samuel Dame2
1 Department of Accounting, Ahmadu Bello University, Zaria Kaduna-Nigeria
2 Department of Accounting, Federal Polytechnic Bali Taraba-Nigeria
* Corresponding author: abuimam1@yahoo.co.uk
Published: Jun, 2014
Pages: 1-23
Views: 55
Downloads: 28

Abstract

Studies on the influence of corporate governance mechanisms on firm
performance often overlook the possibility that reported earnings can be
misrepresented by managers in order to achieve a variety of objectives.
This paper examined the relationship between corporate governance on
corporate financial performance when performance is stripped of the
discretionary component of accruals. Secondary data were extracted
from annual reports of the sample firms for the period 2009 to 2011 and
OLS multiple regression was used as a tool for data analysis. The study
documented that corporate governance significantly impact on both the
adjusted and unadjusted firm performance in different magnitudes and
directions. Specifically, it was found that board composition is inversely
related with pre-adjusted financial performance while a positive
interaction emerges between executive compensation and firm
performance regardless of the performance specification model.

Keywords

Corporate Governance Earnings management Pre-adjusted financial performance

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How to Cite

Ahmed, A., & Dame, S. (2014). CORPORATE GOVERNANCE AND PRE-ADJUSTED FINANCIAL PERFORMANCE: EVIDENCE FROM LISTED MANUFACTURING FIRMS IN NIGERIA. Nigerian Journal of Accounting Research, 10(1), 1-23.

A. Ahmed, and S. Dame, "CORPORATE GOVERNANCE AND PRE-ADJUSTED FINANCIAL PERFORMANCE: EVIDENCE FROM LISTED MANUFACTURING FIRMS IN NIGERIA," Nigerian Journal of Accounting Research, vol. 10, no. 1, pp. 1-23, June 2014.

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