Ownership Structure and Earnings Quality of Listed Financial Firms in Nigeria
Keywords:
ownership concentration, institutional ownership, managerial ownership, earnings quality
Abstract
The study determined the effect of ownership structure on earnings quality of listed financial firms in Nigeria. The study employed secondary data. The study population comprised all the 16 listed financial firms on the Nigerian Stock Exchange. Purposive sampling technique was adopted to select top 10 banks whose shares are consistently traded on the stock market. Data for ownership structure and earnings quality were sourced from the audited financial statements of the selected firms and the Nigerian Stock Exchange Fact book over a period of 10 years (2009)(2010)(2011)(2012)(2013)(2014)(2015)(2016)(2017)(2018). Collected data were analyzed using pooled ordinary least square, fixed effect and random effect estimation techniques. The result from the study showed that institutional ownership (t=4.3, p˂0.05) had a positive and statistically significant relationship with earnings quality while ownership concentration (t=-2.5, p˂0.05) had a negative and significant relationship with earnings quality.
Downloads
- Article PDF
- TEI XML Kaleidoscope (download in zip)* (Beta by AI)
- Lens* NISO JATS XML (Beta by AI)
- HTML Kaleidoscope* (Beta by AI)
- DBK XML Kaleidoscope (download in zip)* (Beta by AI)
- LaTeX pdf Kaleidoscope* (Beta by AI)
- EPUB Kaleidoscope* (Beta by AI)
- MD Kaleidoscope* (Beta by AI)
- FO Kaleidoscope* (Beta by AI)
- BIB Kaleidoscope* (Beta by AI)
- LaTeX Kaleidoscope* (Beta by AI)
How to Cite
References
N Al-Fayoumi, B Abuzayed, D Alexander (2010) Ownership Structure and Earnings Management in Emerging Markets: The Case of Jordan. 38, 28-47.
S Ali, N Saleh, M Hassan (2008) Ownership Structure and Earnings Management in Listed Companies: The size effects. 1(2), 89-116.
Andres Almazan, Jay Hartzell, Laura Starks (2005) Active Institutional Shareholders and Costs of Monitoring: Evidence from Executive Compensation. 34(4), 5-34.
A Al-Zyoud (2012) The effects of Chairman Independence and Ownership Structure on Earnings Mnangement. 17(8), 938-940.
(2016) THE IMPACT OF INSTITUTIONAL OWNERSHIP STRUCTURE ON EARNINGS QUALITY OF LISTED FOOD/BEVERAGES AND TOBACCO FIRMS IN NIGERIA. 7(1(1)), 20-30.
W Ayadi, Y Boujelbena (2014) The relationship between ownership structure and Earnings Quaity in the Frrench Context. 2(2), 80-87.
H Bala, G Kumai (2015) Audit Committee Characteristics and Earnings Quality of Listed Food and Beverages Firms in Nigeria. 2(8), 216-227.
M Banderlipe (2009) The impact of selected corporate governance variables in mitigating earnings management in the Philippines. 19(1), 17-27.
Mary Bange, Werner De Bondt (1998) R&D budgets and corporate earnings targets. 4(2), 153-184.
Michael Bradbury, Y Mak, S Tan (2006) Board Characteristics, Audit Committee Characteristics and Abnormal Accruals. 18(2), 47-68.
Brian Bushee (1998) Institutional Investors, Long-term Investment, And Earnings Management.
B Bushee (1999) The influence of institutional investors on myopic R&D investment behavior. 73, 305-333.
Brian Bushee (2001) Do Institutional Investors Prefer Near-Term Earnings over Long-Run Value?. 18(2), 207-246.
Qiang Cheng, Terry Warfield (2005) Equity Incentives and Earnings Management. 80(2), 441-476.
S Claessens, J Fan (2002) Corporate governance in Asia: A survey. 3(2), 71-103.
M Cornett, A Marcus, H Tehraniam (2008) Corporate governance and pay-for-performance: The impact of earnings management. 87(2), 357-375.
M Dalhat (2014) Corporate Governance Mechanisims and Earnings Quality of Listed Manufacturing Companies in Nigeria.
Patricia Dechow, Ilia Dichev (2002) The Quality of Accruals and Earnings: The Role of Accrual Estimation Errors. 77(s-1), 35-59.
Patricia Dechow, Weili Ge, Catherine Schrand (2010) Understanding earnings quality: A review of the proxies, their determinants and their consequences. 50(2-3), 344-401.
H Demsetz, K Lehn (1985) The Structure of Corporate Ownership: Causes and Consequences. 6(93), 1155-1177.
Diane Denis, John Mcconnell (2003) International Corporate Governance. 38(1), 1.
Dan Dhaliwal, Gerald Salamon, E Dan Smith (1982) The effect of owner versus management control on the choice of accounting methods. 4(1), 41-53.
Rakesh Duggal, James Millar (1999) Institutional ownership and firm performance: The case of bidder returns. 5(2), 103-117.
A Ebrahim (2007) Earnings management and board activity: An additional evidence. 6(1), 42-58.
E Fama, M Jensen (1983) Separation of Ownership and Control. 26, 301-325.
M Gulzar, P Wuham, Z Wang (2011) Corporate governance characteristics and earnings management: empirical evidence from Chinese listed firms. 1(1), 133-151.
Paul Healy (1985) The effect of bonus schemes on accounting decisions. 7(1-3), 85-107.
Hafiza Hashim, Susela Devi (2008) Board characteristics, ownership structure and earnings quality: Malaysian evidence. 1, 97-123.
Hafiza Hashim, S Devi (2012) Institutional Monitoring and Earnings Quality in Malaysia. 65, 419-426.
S Hassan, M Farouk (2014) Firm Attributes and Earnings Quality of Listed Oil and Gas Companies in Nigeria. 3(1), 99-114.
Robert Holthausen, David Larcker, Richard Sloan (1995) Annual bonus schemes and the manipulation of earnings. 19(1), 29-74.
Ming-Feng Hsu, Shiow-Ying Wen (2015) The Influence of Corporate Governance in Chinese Companies on Discretionary Accruals and Real Earnings Management. 5(3), 391-406.
(2010) Conceptual Framework for Financial Reporting: The Objective of Financial Reporting and Qualitative Characteristics of Decision-useful Financial Reporting Information.
B Jaggi, J Tsui (2007) Insider trading earnings management and corporate governance:Empirical evidence based on Hong Kong Firms. 18(3), 192-222.
Michael Jensen, William Meckling (1976) Theory of the firm: Managerial behavior, agency costs and ownership structure. 3(4), 305-360.
Kose John, Lemma Senbet (1998) Corporate governance and board effectiveness. 22(4), 371-403.
Kiridaran Kanagaretnam, Gerald Lobo, Robert Mathieu (2004) Earnings Management to Reduce Earnings Variability: Evidence from Bank Loan Loss Provisions. 3(1), 128-148.
April Klein (2002) Audit committee, board of director characteristics, and earnings management. 33(3), 375-400.
Ping-Sheng Koh (2003) On the association between institutional ownership and aggressive corporate earnings management in Australia. 35(2), 105-128.
Mohammad Moradi, Ahmad Nezami (2011) Influence of Ownership Structure on Earning Quality in the Listed Firms of Tehran Stock Exchange. 2(4), 146-154.
S Ostaa, H Naderib (2012) The Effects of Ownership Structure on Corporate Value in the Tehran Stock Exchange. 2, 1344-1347.
S Penman, X Zhang (2002) Accounting conservatism, the quality of earnings and stock returns. 77(2), 237-264.
Michael Porter (1992) CAPITAL CHOICES: CHANGING THE WAY AMERICA INVESTS IN INDUSTRY. 5(2), 4-16.
John Pound (1988) Proxy contests and the efficiency of shareholder oversight. 20, 237-265.
S Raheel (2017) Impact of Characteristics of Board on Earnings Management on the Firm: Evidence from Pakistan Stock Exchange.
Z Salleh, J Stewart, S Manson (2006) The Impact of Board Composition and Ethnicity from Malaysian companies. 5(2), 61-83.
Andrei Shleifer, Robert Vishny (1997) A Survey of Corporate Governance. 52(2), 737-783.
Erivelto Sousa, Fernando Galdi (2016) The relationship between equity ownership concentration and earnings quality: evidence from Brazil. 51(4), 331-343.
C Stickney, P Brown, J Wahlen (2004) Financial reporting and statement analysis: A strategic perspective.
Joseph Stiglitz (1985) Credit Markets and the Control of Capital. 17(2), 133.
C Sundaramurthy, D Rhoades (2005) A Metaanalysis of the effects of executive and institutional ownership on firm performance. 17(4), 494-510.
Steen Thomsen, Torben Pedersen (2000) Ownership structure and economic performance in the largest european companies. 21(6), 689-705.
N Vafeas (2005) Audit Committee, Boards and the Quality of Reported Earnings. 22(1), 1093-1122.
Terry Warfield, John Wild, Kenneth Wild (1995) Managerial ownership, accounting choices, and informativeness of earnings. 20(1), 61-91.
N Waweru, G Riro (2013) Corporate Governance, Firm Characteristics and Earnings Management in Emerging Economy. 11(1), 43-64.
Michael Weisbach (1988) Outside directors and CEO turnover. 20, 431-460.
Chi‐yih Yang, Hung‐neng Lai, Boon Leing Tan (2008) Managerial Ownership Structure and Earnings Management. 6(1), 35-53.
Kenton Yee (2006) Earnings Quality and the Equity Risk Premium: A Benchmark Model*. 23(3), 833-877.
Taiyun Zhou, Gang Yao (2008) Institutional investor distraction and stock price synchronicity. 65(2), 1888-1907.
Taisier Zoubi, Osamah Al‐khazali (2007) Empirical testing of the loss provisions of banks in the GCC region. 33(7), 500-511.
Published
2020-12-17
Issue
Section
License
Copyright (c) 2020 Authors and Global Journals Private Limited
This work is licensed under a Creative Commons Attribution 4.0 International License.