Effect of Corporate Governance on Earnings Management of Commercial Banks in Nigeria

Ubesie Madubuko Cyril Phd; Inyiama Ethel Chinakpude

doi:doi:10.11648/j.ijafrm.20190402.13

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Effect of Corporate Governance on Earnings Management of Commercial Banks in Nigeria

Ubesie Madubuko Cyril Phd, Inyiama Ethel Chinakpude

Published in International Journal of Accounting, Finance and Risk Management (Volume 4, Issue 2)

Received: 21 March 2019 Accepted: 6 May 2019 Published: 24 July 2019

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Abstract

The research examines the effects, magnitude and strength of the relationships between corporate governance and earning management of commercial banks in Nigeria. The research made use of secondary data obtained from annual report and accounts of four commercial banks, First Bank of Nigeria Plc, Zenith Bank Plc, Diamond Bank Plc and United Bank for Africa, from year 2007 to 2017. The nature and magnitude of association between the dependent variable (DPS) and the independent variables were determined using the multiple regression model. The movement pattern of the dependent and independent variable was represented graphically while descriptive statistics was used to check the validity of the result and data. Correlation Analysis was performed to test the strength of the relationship between selected variables. Earnings Per Share was found to be negatively and significantly influenced by Board Size (BDSIZE) while Ownership concentration has a positive and insignificant effect on Earnings Per Share. Board meeting has a positive and significant effect on Earnings Per Share. In line with the agency theory and consistent with the findings, it is implied thatOwnership Concentration and Board Meetingsclosely monitored and improved on as they have positive influence on Earnings Per Share.

Published in	International Journal of Accounting, Finance and Risk Management (Volume 4, Issue 2)
DOI	10.11648/j.ijafrm.20190402.13
Page(s)	61-70
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2019. Published by Science Publishing Group

Keywords

Corporate Governance, Nigerian Banks, Agency Theory, Earnings Management

References

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Ubesie Madubuko Cyril Phd, Inyiama Ethel Chinakpude. (2019). Effect of Corporate Governance on Earnings Management of Commercial Banks in Nigeria. International Journal of Accounting, Finance and Risk Management, 4(2), 61-70. https://doi.org/10.11648/j.ijafrm.20190402.13

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ACS Style

Ubesie Madubuko Cyril Phd; Inyiama Ethel Chinakpude. Effect of Corporate Governance on Earnings Management of Commercial Banks in Nigeria. Int. J. Account. Finance Risk Manag. 2019, 4(2), 61-70. doi: 10.11648/j.ijafrm.20190402.13

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AMA Style

Ubesie Madubuko Cyril Phd, Inyiama Ethel Chinakpude. Effect of Corporate Governance on Earnings Management of Commercial Banks in Nigeria. Int J Account Finance Risk Manag. 2019;4(2):61-70. doi: 10.11648/j.ijafrm.20190402.13

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@article{10.11648/j.ijafrm.20190402.13,
  author = {Ubesie Madubuko Cyril Phd and Inyiama Ethel Chinakpude},
  title = {Effect of Corporate Governance on Earnings Management of Commercial Banks in Nigeria},
  journal = {International Journal of Accounting, Finance and Risk Management},
  volume = {4},
  number = {2},
  pages = {61-70},
  doi = {10.11648/j.ijafrm.20190402.13},
  url = {https://doi.org/10.11648/j.ijafrm.20190402.13},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijafrm.20190402.13},
  abstract = {The research examines the effects, magnitude and strength of the relationships between corporate governance and earning management of commercial banks in Nigeria. The research made use of secondary data obtained from annual report and accounts of four commercial banks, First Bank of Nigeria Plc, Zenith Bank Plc, Diamond Bank Plc and United Bank for Africa, from year 2007 to 2017. The nature and magnitude of association between the dependent variable (DPS) and the independent variables were determined using the multiple regression model. The movement pattern of the dependent and independent variable was represented graphically while descriptive statistics was used to check the validity of the result and data. Correlation Analysis was performed to test the strength of the relationship between selected variables. Earnings Per Share was found to be negatively and significantly influenced by Board Size (BDSIZE) while Ownership concentration has a positive and insignificant effect on Earnings Per Share. Board meeting has a positive and significant effect on Earnings Per Share. In line with the agency theory and consistent with the findings, it is implied thatOwnership Concentration and Board Meetingsclosely monitored and improved on as they have positive influence on Earnings Per Share.},
 year = {2019}
}

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TY  - JOUR
T1  - Effect of Corporate Governance on Earnings Management of Commercial Banks in Nigeria
AU  - Ubesie Madubuko Cyril Phd
AU  - Inyiama Ethel Chinakpude
Y1  - 2019/07/24
PY  - 2019
N1  - https://doi.org/10.11648/j.ijafrm.20190402.13
DO  - 10.11648/j.ijafrm.20190402.13
T2  - International Journal of Accounting, Finance and Risk Management
JF  - International Journal of Accounting, Finance and Risk Management
JO  - International Journal of Accounting, Finance and Risk Management
SP  - 61
EP  - 70
PB  - Science Publishing Group
SN  - 2578-9376
UR  - https://doi.org/10.11648/j.ijafrm.20190402.13
AB  - The research examines the effects, magnitude and strength of the relationships between corporate governance and earning management of commercial banks in Nigeria. The research made use of secondary data obtained from annual report and accounts of four commercial banks, First Bank of Nigeria Plc, Zenith Bank Plc, Diamond Bank Plc and United Bank for Africa, from year 2007 to 2017. The nature and magnitude of association between the dependent variable (DPS) and the independent variables were determined using the multiple regression model. The movement pattern of the dependent and independent variable was represented graphically while descriptive statistics was used to check the validity of the result and data. Correlation Analysis was performed to test the strength of the relationship between selected variables. Earnings Per Share was found to be negatively and significantly influenced by Board Size (BDSIZE) while Ownership concentration has a positive and insignificant effect on Earnings Per Share. Board meeting has a positive and significant effect on Earnings Per Share. In line with the agency theory and consistent with the findings, it is implied thatOwnership Concentration and Board Meetingsclosely monitored and improved on as they have positive influence on Earnings Per Share.
VL  - 4
IS  - 2
ER  -

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Author Information

Ubesie Madubuko Cyril Phd

Department of Accountancy, Enugu State University of Science and Technology, Enugu, Nigeria
Inyiama Ethel Chinakpude

Department of Accountancy, Enugu State University of Science and Technology, Enugu, Nigeria

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APA Style

Ubesie Madubuko Cyril Phd, Inyiama Ethel Chinakpude. (2019). Effect of Corporate Governance on Earnings Management of Commercial Banks in Nigeria. International Journal of Accounting, Finance and Risk Management, 4(2), 61-70. https://doi.org/10.11648/j.ijafrm.20190402.13

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ACS Style

Ubesie Madubuko Cyril Phd; Inyiama Ethel Chinakpude. Effect of Corporate Governance on Earnings Management of Commercial Banks in Nigeria. Int. J. Account. Finance Risk Manag. 2019, 4(2), 61-70. doi: 10.11648/j.ijafrm.20190402.13

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AMA Style

Ubesie Madubuko Cyril Phd, Inyiama Ethel Chinakpude. Effect of Corporate Governance on Earnings Management of Commercial Banks in Nigeria. Int J Account Finance Risk Manag. 2019;4(2):61-70. doi: 10.11648/j.ijafrm.20190402.13

Copy | Download

@article{10.11648/j.ijafrm.20190402.13,
  author = {Ubesie Madubuko Cyril Phd and Inyiama Ethel Chinakpude},
  title = {Effect of Corporate Governance on Earnings Management of Commercial Banks in Nigeria},
  journal = {International Journal of Accounting, Finance and Risk Management},
  volume = {4},
  number = {2},
  pages = {61-70},
  doi = {10.11648/j.ijafrm.20190402.13},
  url = {https://doi.org/10.11648/j.ijafrm.20190402.13},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijafrm.20190402.13},
  abstract = {The research examines the effects, magnitude and strength of the relationships between corporate governance and earning management of commercial banks in Nigeria. The research made use of secondary data obtained from annual report and accounts of four commercial banks, First Bank of Nigeria Plc, Zenith Bank Plc, Diamond Bank Plc and United Bank for Africa, from year 2007 to 2017. The nature and magnitude of association between the dependent variable (DPS) and the independent variables were determined using the multiple regression model. The movement pattern of the dependent and independent variable was represented graphically while descriptive statistics was used to check the validity of the result and data. Correlation Analysis was performed to test the strength of the relationship between selected variables. Earnings Per Share was found to be negatively and significantly influenced by Board Size (BDSIZE) while Ownership concentration has a positive and insignificant effect on Earnings Per Share. Board meeting has a positive and significant effect on Earnings Per Share. In line with the agency theory and consistent with the findings, it is implied thatOwnership Concentration and Board Meetingsclosely monitored and improved on as they have positive influence on Earnings Per Share.},
 year = {2019}
}

Copy | Download

TY  - JOUR
T1  - Effect of Corporate Governance on Earnings Management of Commercial Banks in Nigeria
AU  - Ubesie Madubuko Cyril Phd
AU  - Inyiama Ethel Chinakpude
Y1  - 2019/07/24
PY  - 2019
N1  - https://doi.org/10.11648/j.ijafrm.20190402.13
DO  - 10.11648/j.ijafrm.20190402.13
T2  - International Journal of Accounting, Finance and Risk Management
JF  - International Journal of Accounting, Finance and Risk Management
JO  - International Journal of Accounting, Finance and Risk Management
SP  - 61
EP  - 70
PB  - Science Publishing Group
SN  - 2578-9376
UR  - https://doi.org/10.11648/j.ijafrm.20190402.13
AB  - The research examines the effects, magnitude and strength of the relationships between corporate governance and earning management of commercial banks in Nigeria. The research made use of secondary data obtained from annual report and accounts of four commercial banks, First Bank of Nigeria Plc, Zenith Bank Plc, Diamond Bank Plc and United Bank for Africa, from year 2007 to 2017. The nature and magnitude of association between the dependent variable (DPS) and the independent variables were determined using the multiple regression model. The movement pattern of the dependent and independent variable was represented graphically while descriptive statistics was used to check the validity of the result and data. Correlation Analysis was performed to test the strength of the relationship between selected variables. Earnings Per Share was found to be negatively and significantly influenced by Board Size (BDSIZE) while Ownership concentration has a positive and insignificant effect on Earnings Per Share. Board meeting has a positive and significant effect on Earnings Per Share. In line with the agency theory and consistent with the findings, it is implied thatOwnership Concentration and Board Meetingsclosely monitored and improved on as they have positive influence on Earnings Per Share.
VL  - 4
IS  - 2
ER  -

Copy | Download