Block-holders and Monitoring Mechanisms in Nigeria

Arowolo, Oluyemisi Rachael; Ahmad, Ayoib Che

doi:10.17576/ajag-2017-08-06

Cited by 5 publications

(2 citation statements)

References 42 publications

(51 reference statements)

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“…It is believed that the greater the level of IO, the more likely it is that a company will provide audits that are carried out by a recognized audit firm. This result is also consistent with both the resource dependency and agency theories in terms of conflict resolutions and effective resources usage (Arowolo & Che-Ahmad, 2017). Therefore, IO in Nigeria put more pressure on managers to provide more quality financial reports.…”

Section: Conclusion and Recommendationssupporting

confidence: 84%

“…It assesses the extent to which earnings are managed under current laws and regulations. The approach implies that managers manage earnings through discretionary accruals or accruals over which the management has some control (Arowolo & Che-Ahmad, 2017). This model is predicated on the notion that a company's earnings are the most important item in its financial statements.…”

Section: Accrual Modelmentioning

confidence: 99%

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Ownership Structure and Financial Reporting Quality in Listed Non-Financial Firms in Nigeria

2021

ijafr

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The objective of this study is to appraise the effect of the ownership structure on the quality of financial reporting in Nigeria. The study used data from 41 non-financial firms listed on the Nigerian Stock Exchange (NSE) for the 2011 to 2019 period. The Generalised Method of Moments (GMM) technique was adopted for the study which is vigorous to the threat of heteroskedasticity and endogeneity. The study findings revealed that institutional and foreign ownership has a significant negative relationship with earnings management, thereby, improving the reporting quality. However, the results show that managerial ownership has an insignificant negative relationship with earnings management. The finding of this study is also robust in scope concerning the issue of unobserved heterogeneity which prior studies have failed to address. Thus, future corporate governance reforms should recognize and sustain these efforts. The study recommends that Firms should expand their institutional and foreign ownership by providing sufficient shares to them. This is important because they frequently deploy their professionalism and wealth of experience to the firms towards meeting corporate goals and agitation of good reporting practice. On the other hand, Firms should ensure that the shareholding of the insider managers is not too high in such a way that the proportion of their shareholding should be minimal. Their shares should not exceed 10% of the total shareholding in the company as it was found to be among the variables that reduce firms' performance.

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Section: Conclusion and Recommendationssupporting

confidence: 84%

Section: Accrual Modelmentioning

confidence: 99%