Effect of Board Physiognomies on Earnings Management of Nigerian Banks

Abstract

This study examines the relationship between board physiognomies and earnings management of banks in Nigeria for ten years period (2010-2019). Study's comprise of all the 14 deposit money banks listed on Nigerian Exchange Group as at December 31, 2019. All 14 banks were used as sample by adopting census sampling technique. The technique of analysis employed was Multiple regression technique. Result of the analyses revealed that board control minimizes manager's tendencies to manage earnings while board independence increases earnings management. It is therefore concluded that board independence have the tendencies of perpetuating earnings management while board control reduces earnings management banks in Nigeria. It is thus recommended that the Central Bank of Nigeria (CBN) and Financial Reporting Council (FRC) should in their codes encourage ownership concentration investment because of the role they play in checkmating unwanted discretionary accruals in listed Nigerian deposit money banks.