MONITORING ATTRIBUTES AND EARNINGS QUALITY OF LISTED CONGLOMERATE FIRMS IN NIGERIA

Authors

  • Munir Aliyu Saleh Federal University Wukari
  • Umar Farouk Abdulkarim Federal University Gusau
  • Isah Abdulkarim Ibrahim Federal Inland Revenue Service

DOI:

https://doi.org/10.57233/gujaf.v1i1.20

Keywords:

Monitoring characteristics, s, Earnings quality, Conglomerates firms

Abstract

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.

Author Biographies

Munir Aliyu Saleh, Federal University Wukari

Department of Accounting
Federal University Wukari, Taraba State, Nigeria

Umar Farouk Abdulkarim, Federal University Gusau

Department of Accounting and Finance
Federal University Gusau, Zamfara State, Nigeria
+2348069393824

Isah Abdulkarim Ibrahim, Federal Inland Revenue Service

Tax Investigation Department,
Federal Inland Revenue Service

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Published

2020-04-20

How to Cite

Saleh, M. A., Abdulkarim, U. F., & Ibrahim, I. A. (2020). MONITORING ATTRIBUTES AND EARNINGS QUALITY OF LISTED CONGLOMERATE FIRMS IN NIGERIA. Gusau Journal of Accounting and Finance, 1(1), 14. https://doi.org/10.57233/gujaf.v1i1.20