Impact of Corporate Governance Structures on Earnings Management and Performance: An Empirical Investigation of Quoted Manufacturing Companies in Nigeria

Abstract

The study examines the impact of corporate governance structure on earnings management and corporate performance of manufacturing listed firms in Nigeria. The study used a sample size of twenty-seven listed manufacturing firm in Nigeria from 2012-2021. The study adopted a panel data research design. A multiple regression statistical tool was used to test the hypotheses. The predictor variable was measured using board size, board meeting frequency, audit committee size and audit committee meeting frequency. Earnings management was measured using Discretionary Accrual after the modified Jones (1991) model. Corporate performance was measured by return on security market stock (RET). Results of the multiple regression analysis indicated that the four governance categories have a negative and significant association with earnings management, but a positive and significant relationship with RET. The study recommended that there should an increase in board size, board meeting frequency, audit committee size and audit committee meeting frequency