Effect of Managerial Ownership and Audit Committee Financial Expertise on Earnings Management of Listed Manufacturing Companies in Nigeria (Published)
Earnings management research has a long and rich history. However, the effect of managerial ownership and audit committee financial expertise on earnings management is rarely conducted in the developing countries like Nigeria. Therefore, this study examines how managerial ownership and audit committee financial expertise on earnings management of listed manufacturing companies in Nigeria. This study used the Roychowdhury approach to measure real earnings management. Thirty-four (34) manufacturing companies out of seventy-three (73) population that were listed on the Nigerian Exchange (NGX) from 2007 to 2021 was selected as sample size. Data was gleaned from the annual financial reports of the sampled companies for this study. Descriptive statistics, Pearson correlation, and quantile regression analysis are the econometric techniques used to test the analysed data and for hypothesis testing. Results from the study showed that managerial ownership significantly affects real-earnings management. When the effect was moderated by the financial expertise of the audit committee, the effect of ownership structure on real earnings management disappears. The result from the study show that managers of manufacturing firms in Nigeria should be encouraged to own more shares in the companies they manage in order to minimize real earnings management. The evidence can theoretically serve as a solid foundation for regulatory action, notably through improving the alignment of managers’ and shareholders’ interests. The results from this study have important implications for regulators, who will gain from understanding how managerial ownership affects real earnings management and improve the accuracy of financial reporting. The findings will also help policymakers and academics to understand how managerial ownership affects real earnings management in Nigeria.
Citation: Irom M.I., Okpanachi J., Ahmed N.M., and Agbi S.E. (2023) Effect of Managerial Ownership and Audit Committee Financial Expertise on Earnings Management of Listed Manufacturing Companies in Nigeria, European Journal of Accounting, Auditing and Finance Research, Vol.11, No. 2, pp.15-35
Keywords: Earnings Management, Managerial Ownership, audit committee financial expertise, real earnings management
Ownership Structure and Dividend Policy in Nigerian Quoted Companies (Published)
The objective of the study was to examine the relationship between ownership structure and dividend policy in Nigeria. The ownership structure variables covered included; Managerial Ownership, Institutional Ownership and Foreign Ownership. The longitudinal research design was employed in the study as dividend policy was examined across time and cross section. The study employed the simple random sampling technique in selecting a sample size consisting of 70 companies The secondary data used for the study were retrieved from the audited financial statements of the various quoted companies from 2009 to 2016. The findings of the study revealed that Managerial Ownership (MOWN), Institutional Ownership (IOWN) Foreign Ownership (FOWN) have significant effects on dividend policy.Results from the dividend adjustment models reveal that the effect of ownership structure variables on dividend payout is strongly moderated by earnings changes especially in the full adjustment model. The study recommends that companies adopt a diverse ownership structure with elements of managerial, foreign and institutional presence as this can ensure that the dividend policy decision is one that is balanced and prevents expropriation, address agency issues and put the company in a sustainable path in the long run.
Keywords: Dividend Policy, Institutional Ownership Foreign and Ownership, Managerial Ownership