|Title: MODERATING EFFECT OF AUDIT COMMITTEE INDEPENDENCE ON THE RELATIONSHIP BETWEEN BOARD INDEPENDENCE AND MEETING ON EARNINGS MANAGEMENT OF LISTED INDUSTRIAL GOODS FIRMS IN NIGERIA|
Kolade, Morakinyo Olomi, Adebayo, Paul Adejola and Naburgi Musa Muhammed
In recent years, corporate governance has become a key area of interest among academics, practitioners, and policymakers, particularly in emerging economies like Nigeria. Earnings management practices have been identified as a major concern in corporate governance, as they can undermine financial reporting quality and lead to negative outcomes for firms and investors. This study, therefore, examines the moderating effect of audit committee independence on the relationship between board independence and meetings on earnings management in listed industrial goods firms in Nigeria for the period of 2012 to 2021. The objective is to investigate whether the presence of an independent audit committee strengthens the impact of board independence and meetings on mitigating earnings management practices. This study used ex-post facto research design. The population consists of the thirteen listed industrial goods firms in Nigeria. A sample of ten firms was used based on availability of data. Secondary source of data collection was used, and the data were extracted from the annual reports and accounts of the firms. Panel regression technique was used, and Stata 17 was employed as the tool of data analysis. The findings revealed that audit committee independence strength the significant effect of board impendence on earnings management of listed industrial goods firms in Nigeria. While committee independence does not support the significant effect of board impendence on earnings management of listed industrial goods firms in Nigeria. The study recommended amongst others that Regulators and policymakers should establish and enforce stricter guidelines for audit committee independence. Board members should stride to attend Board Meetings regularly. Companies should be mandated to have a certain percentage of independent members on their audit committees, ensuring they possess the necessary qualifications, expertise, and independence from the company’s management.
|Keywords: Board Independence, Board Meeting, Audit Committee Independence, Earnings Management.|