Citation: Sunday Otuya and Dheseviano Emiaso (2022) Accounting Restatements, Multiple Directorships and Related Party Transactions, European Journal of Accounting, Auditing and Finance Research, Vol.10, No. 2, pp.52-63
Abstract: The study was carried out to examine multiple directorship and related party transactions as they relate to the incidence of accounting restatement in Nigeria. The scope of the study was financial statements of 14 listed industrial goods companies for the period 2011 to 2020. The study, anchored on the Agency Theory obtained data from secondary sources through content analysis of financial statements. Findings of the study show that related party transactions have a positive and significant association with accounting restatement. The study further revealed that multiple directorship and firm profitability have a positive but not significant association with the incidence of accounting restatement among listed industrial goods companies in Nigeria. The study concludes that both board attributes of multiple directorship and firm operational characteristics such as related party transactions and profitability are important in determining the incidence of accounting restatement. The study recommends that firms should encourage sound corporate governance mechanisms to enhance effective monitoring and internal control processes to minimize the incidence of accounting misstatements
Keywords: accounting restatements, corporate reports, multiple directorship, related party transactions.
