MONITORING ATTRIBUTES AND EARNINGS QUALITY OF LISTED CONGLOMERATE FIRMS IN NIGERIA
DOI:
https://doi.org/10.57233/gujaf.v1i1.20Keywords:
Monitoring characteristics, s, Earnings quality, Conglomerates firmsAbstract
This paper examines the effect of monitoring characteristics on earnings quality of listed
conglomerate firms in Nigeria for the period of ten years from 2010-2019. As at 31st December,
2019, there were six (6) listed conglomerate firms in Nigeria and all were selected to serve as the
sample using census approach. Three variables independent directors, audit committee and
institutional ownership were used to represent monitoring characteristics. The Francis et al (2005)
model was used as measure of earnings quality. Multiple panel regression was used to test the model
of the study using Ordinary Least Square OLS regression and data was collected from the annual
reports and accounts of the sampled firms. The findings of the paper revealed that two of the
monitoring characteristics variables (IND and INST) positively and significantly affect earnings
quality while AC has a significant but negative effect on earnings quality of listed conglomerate
firms in Nigeria. It is therefore recommended that, board of directors of listed conglomerate firms
should compose more of independent directors as it was found to have a significant positive
influence on earnings quality, also their ownership structure should comprise more institutional
shareholders as it has been found to improve earnings quality positively.