Managerial ability, executive compensation and earnings quality of deposit money banks in Nigeria.
No Thumbnail Available
Date
2022
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Department of Management and Accounting, Faculty of Administration. Obafemi Awolowo University.
Abstract
The study determined the effect of managerial ability on earnings quality of deposit money banks in Nigeria; it established the relationship between executive compensation and earnings profile. It also ascertained the relationship between managerial ability and executive compensation. These were with a view to providing information on managerial ability, executive compensation, and earnings quality of Deposit Money Banks (DMBs) in Nigeria.The study used secondary data. The population of the study consisted of the sixteen (16) DMBs listed on the Nigerian Stock Exchange (NSE). The sample size was made up of the fourteen (14) DMBs that were listed on the NSE as at 1st January 2006. Data were collected on variables such as firm size, managerial ability, operating cash flow, executive gender, earnings quality, total compensation, firm growth, and leverage from the audited financial statements of selected DMBs and the NSE. Data collected were analysed using Fixed Effect Method and Random Effect Method.
The result showed that firm size (t = -11.226, p < 0.05), one lag period of earnings before tax (t = -18.190, p < 0.05) and the joint effect of managerial ability and profit (t = 3.141, p < 0.05) were significant determinants of earnings quality. Furthermore, the result showed that compensation (t = 9.817, p < 0.05), net operating cash flow (t = 1.981, p leverage (t = 2.550, p < 0.05) and executive gender (t = 2.790, p < 0.05) had a significant effect on earnings profile. Finally, the result showed that managerial ability (t = 2.494, p < 0.05), firm size (t = 12.254, p < 0.05), leverage (t = 3.372, p < 0.05) and changes in earnings before interest tax (t = 5.757, p < 0.05) were positive and significantly related to executive compensation.The study concluded that managerial ability and executive compensation significantly enhanced the earnings quality of Deposit Money Banks in Nigeria.
Description
xii, 107p.
Keywords
Citation
Momoh, F.E. (2022) Managerial ability, executive compensation and earnings quality of deposit money banks in Nigeria. Obafemi Awolowo University.