CORPORATE GOVERNANCE AND EARNINGS MANAGEMENT IN NIGERIA DEPOSIT MONEY BANKS

ABSTRACT

This study examine the relationship between corporate governance and earnings management in Nigeria deposit money banks. The analysis involves the use of two general known method namely; statistical and econometric methods in the view of providing a rich background for the investigation, using ENMG as earnings management indicator and five performance-enhancing variables to include board composition , board size, audit committee, firm size and firm leverage (debt ratio), as independent variables. A sample of fourteen of deposit money banks between 2012 and 2018 were examined using descriptive statistics, correlation analysis and multivariate panel regression technique. Out of the five explanatory variables employed in this study only firm size and firm leverage positively and significantly have significant effect on earnings management in Nigeria deposit money banks within the course of the study. Alsothe explanatory variables are not mutually exclusive in explaining the management of earnings in Nigeria deposit money banks. We recommend among others; that the regulatory authorities should intensify the pursuit of transparency among firms’ executives. A requirement that mandates management to communicate to shareholders in precise and clear fashion the extent of the bank’s risk and losses on a regular basis could be enforced