DILIGENCE AND INDEPENDENCE OF CORPORATE BOARD COMMITTEES AND THE QUALITY OF REPORTED EARNINGS AMONG LISTED COMPANIES IN NIGERIA
DILIGENCE AND INDEPENDENCE OF CORPORATE BOARD COMMITTEES AND THE QUALITY OF REPORTED EARNINGS AMONG LISTED COMPANIES IN NIGERIA

Summary/Abstract: This work examines the concepts of diligence and independence of committees of corporate boards and assesses their effects on earnings quality of firms. By adopting a systematic elimination and stage wise sampling method, 62 firms were purposely sampled, and secondary data were carefully extracted from their financial statements over 10 years period (2011 – 2020). The data were panel in nature and both the random and fixed effect analyses were conducted alongside the Hausman test for endogeneity as applicable. Regression outcome proved that the diligence of all board committees jointly influences earnings quality of firms. In the same way, independence of board committees significantly reduces accruals and real activities manipulation thereby improving earnings quality of firms. The study lucidly recommends among others that regulations that mandates the inclusion of reasonable number of independent directors in respective board committees should be made and enforced by regulators.

• Details
• Contents