Board gender diversity, earnings management and performance of listed non-financial firms in Nigeria
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Date
2022
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Department of Management and Accounting, Faculty of Administration, Obafemi Awolowo University
Abstract
This study assessed the extent of board diversity of listed non-financial firms in Nigeria from 2011–2019 and examined the effect of gender diversity on earnings management. It also investigated the direction of causality between gender diversity and performance and determined the effect of gender diversity on performance in listed non-financial firms in Nigeria. These were with a view to examining the relationship among gender diversity, earnings management and performance of listed non-financial firms in Nigeria.
The study used the secondary data. The population of the study comprised 87 listed non-financial firms on the Nigerian Stock Exchange (NSE). Purposive sampling technique was used to select a sample size of 50 listed non-financial firms on the Nigerian Stock Exchange (NSE) between the period of 2011-2019. Data were collected from audited financial report of the selected firms and fact book of Nigerian Stock Exchange (NSE) for variables such as board token, board critical mass, proportion of women on board, proportion of women on audit committee, board size, board meeting, board independence firm size, leverage, growth opportunity, and earnings management. Data collected were analysed using percentage, fixed effect methods and t- test statistical analysis.
The results showed that women on boards were largely under-represented with an average of 12.03% with only 15% exceeding the board tokenism threshold and 4% exceeding the critical mass threshold. The result of the effect of gender diversity on earnings management revealed that the proportion of women on board (PWOB) was negative but significantly related to earnings management (EM) with a statistic of (t = -25.557, p < 0.05), the proportion of women in the audit committee was also negative but significantly related to earnings management with a statistic of(t = -4.133, p < 0.05). Also, the result showed that board size (t = -11.245, p < 0.05) and firm size (t= -2.161, p < 0.05) were negative but significantly affect earnings management. Furthermore, the result showed a positive and significant effect the proportion of women on the audit committee and performance with a statistic of (t = 2.642 and p < 0.05). Also, board meetings, firm size and leverage were positive and significantly associated with performance with a statistic of (t = 1.982, p < 0.048), (t = 2.716, p < 0.05) and (t = 3.376, p < 0.05) respectively.
The study concluded that gender diversity had a significant positive influence on earnings management and performance.
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xii, 147p
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Citation
FAKUNLE I.O (2022) Board gender diversity , earnings management and performance of listed non-financial firms in Nigeria, Department of Management and Accounting, Faculty of Administration Obafemi Awolowo University.