European Journal of Accounting, Auditing and Finance Research (EJAAFR)

EA Journals

Accounting Conservatism

Board Structure and Accounting Conservatism in Listed Non-Financial Firms in Nigeria (Published)

The study examines the impact of board structure on accounting conservatism in listed non-financial firms in Nigeria. The longitudinal research design was adopted and the study covered the period from 2010-2019. study period, there are 75 quoted non-financial firms in the Nigerian Exchange Group classification and these will constitute the sample.  In this study, secondary data, by way of annual reports and accounts of the sampled companies in Nigeria and some relevant Nigerian Exchange Group fact books were used to collect data. The effect of corporate governance structure on accounting conservatism was analysed using panel regression. This study employed descriptive statistical methods and includes descriptive techniques such as the mean, standard deviation, range, frequency distribution. More importantly, the random effects (RE) and fixed effects (FE) regression as estimated. The findings of the study reveals that Board size (BDS) has a significant impact on accounting conservatism particularly for Market to book (MTB) and income statement based indicators of accounting conservatism. Also, Board independence (BDIND) has a significant impact on accounting conservatism and this is persistent across all three measures of accounting conservatism used in the study. Board gender diversity (BGD) has a significant impact on accounting conservatism particularly, for accrual based indicators. Hence the study recommends the need for corporate boards to reflect and represent all significant stakeholder interests so that board decisions will not be skewed unhealthily. Therefore, the study recommends for the presence of more independent directors in corporate boards. The study recommends the need for an increase in the level of gender diversity in corporate boards. The study recommends that there is need for shareholders to look closely in order to monitor the practices of management.

Citation: Chiedu Christian O., Anichebe, S. A., Emeka-Nwokeji, N. A. (2022) Board Structure and Accounting Conservatism in Listed Non-Financial Firms in Nigeria, European Journal of Accounting, Auditing and Finance Research, Vol.10, No. 3, pp.42-58


Keywords: Accounting Conservatism, Board Structure, Nigeria, Non-financial firms

Investigating the Relationship between Corporate Governance Principles and Accounting Conservatism for Companies Listed On Saudi Stock Exchange (Published)

In view of the global and local financial collapses and their role in shaking the investors’ confidence in the published financial reports, the accounting literature has moved to accounting conservatism as one of the most important accounting policies. Due to the opportunistic use of the administration of this policy and the low level of accounting conservatism of Saudi corporates, literature attempted to find a mechanism that can help reduce such behavior. It resulted in corporate governance principles and the ability to use accounting methods leading to the use of accounting conservatism in the published financial reports. Therefore, the present study is significant because there is not a study in the Saudi accounting literature that investigated this relationship. It aims to investigate the relationship between corporate governance principles (shareholders’ equity, transparency and disclosure, board independence, audit committee, and stakeholders) and accounting conservatism.  It also aims to find out whether it is positive or negative. Accordingly, it tested a main hypothesis that there is no statistically significant correlation between corporate governance principles and accounting conservatism. It concluded that there is a statistically significant correlation between all corporate governance principles and accounting conservatism for all companies under investigation. It recommends that decision makers in the Saudi Stock Exchange shall enforce applying corporate governance principles due to their positive impact on the integrity of the published financial reports.

Keywords: Accounting Conservatism, Corporate Governance Principles, Saudi Stock Exchange

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