Abstracts
Earnings management has received considerable attention in recent times. This is due to its linkage with the reliability of published accounting reports. Indication from the academic literature has shown that the practice of earnings management is quite extensive among publicly traded firms. In response to the demand for greater proportion of independent directors on corporate boards and the need for financial sophistication of audit quality, this study examines the role of independent board of directors, audit quality and board effectiveness in preventing earnings management in Nigeria. Secondary data were extracted from annual reports of the sample firms for the period between 2002 and 2011 and univariate OLS multiple regression was used as a tool for data analysis. Using an experimental research design, the study finds that board dominated by independent non-executive directors brings a greater breadth of experience to the firm and are in a better position to monitor and control managers, thereby reducing earnings management. Also, it was observed that audit quality reduces the likelihood of earnings management. It earnings management and hence, help to reduce earnings management tendencies. The study recommends that the financial reporting council of Nigeria should strengthen its role in ensuring higher quality financial reporting. Also, certain measures should be put in place to reduce the tendencies for reporting accountants to outfox the reporting principles for their private benefits. Finally, corporate governance code should be given wider applicability across companies in different sectors.
TABLE OF CONTENTS
Abstract
CHAPTER ONE
1.0 Introduction
1.1 Background of Study
1.2 Statement of Problems
1.3 Research Objectives
1.4 Research Question
1.5 Research Hypothesis
1.6 Scope of Study
1.7 Significance of study
1.8 Limitation of study
1.9 Definition of terms
CHAPTER TWO
2.0 Literature Review
CHAPTER THREE
3.0 Research methodology
3.1 Research Design
3.2 Population of study
3.3 Sampling Design and Procedure
3.4 Data Collection Instrument
3.5 Administration of Data Collection Instrument
3.6 Methods of data analysis
CHAPTER FOUR
4.0 Data Presentation and Analysis
4.1 Data Presentation
4.2 Test of Hypothesis
CHAPTER FIVE
5.0 Summary, Conclusion and Recommendation
5.1 Summary
5.2 Conclusion
5.3 Recommendation
References
Questionnaire