CORPORATE GOVERNANCE MECHANISMS, FIRM AGE AND EARNINGS QUALITY OF CONGLOMERATE FIRMS IN NIGERIA
Anas Idris Abdulwahab , Hussaini Bala , Mansur Lubabah Kwambo and Yusuf Junior Gwamna
Volume 2 Issue 2
Abstract
This study investigates the impact of corporate governance mechanisms on earnings quality of conglomerates firms in Nigeria with the moderating effect of firm age. Literatures in relation with corporate governance mechanisms, earnings quality and firm age were reviewed to ascertain the level of their relationship. Again, this study introduces a moderator variable firm age to interact between corporate governance mechanisms and earnings quality of the conglomerates firms in Nigeria. The data of the study were extracted from the annual audited statements of the conglomerate firms in Nigeria. The period of study covers 8 years (2014 – 2021). Multiple regression analysis was adopted to run the regress of the study. The direct relationship model documented that women directors and firm age has a significant effect to earnings quality while independent directors and foreign directed demonstrated an insignificant influence with earnings quality of conglomerates in Nigeria. Whereas, the moderated model was able to interact the relationship between women directors with earnings quality of conglomerates firms in Nigeria. Also, firm age establishes the fact that foreign directors contribute significantly towards monitoring and effective supervision of irregular practices by the managers of the conglomerates in Nigeria. To this end, this work suggests that the non-executive directors should be well experienced and independent in making corporate decisions. It will be of importance that future studies incorporate more corporate governance variables in this domain. Lastly, findings and recommendations is only applicable to the conglomerates firms in Nigeria. Keywords: Firm Age, Leverage, Whistle-Blowing Policy, Firm Size, Foreign Director
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