CORPORATE GOVERNANCE AND EARNINGS PERSISTENCE OF LISTED NIGERIAN FIRMS
Gobierno corporativo y persistencia de los beneficios de las empresas cotizadas en Nigeria.
Article Sidebar
PDF
FLIP
(English)
HTML (Español (España))
XML (Español (España))
Esta obra está bajo una licencia internacional Creative Commons Atribución-NoComercial 4.0.
Main Article Content
Information about the performance of firms is very important to investors for making investment decision. However, investors of firms in developing economies particularly in Nigeria are faced with the problem of access to relevant and reliable information. In view of this, this study examines the effect corporate governance has on earnings persistence of Nigerian listed firms. This research employed the explanatory research design. It generated sampling frame for companies that are listed in 2002 and continues to be listed up to 2021, the entire 51 companies were used, using census sampling technique. Secondary data was employed for this study, extracted from the companies’ audited annual reports. The data obtained were analyzed using dynamic panel regression model. Findings from this study show that: (i) previous year earnings significantly influence current year earnings. (ii) Corporate governance has significant negative influence on the earnings of Nigeria listed firms. (iii) Current year earnings are significantly influenced by the interaction between corporate governance and the past year’s earnings. The study recommends the need for Nigeria listed firms to focus on improving their governance structures through appointing independent directors to the board, establishing effective internal control systems, and ensuring that executive compensation is aligned with long-term performance.
Downloads
Article Details
Abogun, S., Olaniyi, T. A., Ijaiya, M. A., & Fagbemi, T. O. (2020). Earnings persistence of Nigerian listed banks. Jurnal Siasat Bisnis, 24(2), 168–178. https://doi.org/10.20885/jsb.vol24.iss2.art6 DOI: https://doi.org/10.20885/jsb.vol24.iss2.art6
Accounting, A. J. (2020). Effect of corporate governance on income persistence and value relevance of quoted Nigerian firms Cosmas Ikechukwu Asogwa *, Grace Nyereugwu Ofoegbu and Uche Modum. 7(1), 42–65. DOI: https://doi.org/10.1504/AJAAF.2020.109206
Aguguom, A. T., O Dada, S., & N Nwaobia, A. (2019). Earnings Persistence and Firm Performance: Implications of Analysts? Accurate Forecast Ability from the Emerging Market of Nigeria. International Journal of Accounting Research, 07(01). https://doi.org/10.35248/2472-114x.19.7.197 DOI: https://doi.org/10.35248/2472-114X.19.7.197
Alvin, A., andSusanto. Y.K., (2022). “Factors Affecting Earnings Quality”. JurnalBisnis Dan Akuntansi 24 (1), 145-56. https://doi.org/10.34208/jba.v24i1.1401. DOI: https://doi.org/10.34208/jba.v24i1.1401
Aguilera, R. V., & Cuervo-Cazurra, A. (2004). Codes of good governance worldwide: what is the trigger? Organization studies, 25(3), 415-443. DOI: https://doi.org/10.1177/0170840604040669
Atashband, A., Moienadin, M., & Tabatabaenasab, Z. (2014). Examining the Earnings Persistence and Its Components in Explaining the Future Profitability. Interdisciplinary Journal of Contemporary Research in Business, 5(10), 104–117. https://ijcrb.webs.com/
Atle, L., & Hamberg, M. (2013). Earnings sustainability , economic conditions and the value relevance of accounting information. Scandinavian Journal of Management. https://doi.org/10.1016/j.scaman.2013.02.001 DOI: https://doi.org/10.1016/j.scaman.2013.02.001
Becht, M., Franks, J., Mayer, C., & Rossi, S. (2020). The effect of corporate governance on earnings quality: International evidence. Journal of International Business Studies, 51(2), 172-186.
Cheung, Y. L., Huang, X., & Lu, T. (2019) Board gender diversity, corporate governance, and firm performance: Evidence from Hong Kong. Pacific-Basin Finance Journal, 56, 1-25.
El Ghoul, S., Guedhami, O., Nash, R., & Patel, A. (2019). New evidence on the role of the media in corporate social responsibility. Journal of Business Ethics, 154, 1051-1079. DOI: https://doi.org/10.1007/s10551-016-3354-9
Farouk, M. A., Garba Magaji, I., & Akodos Egga, K. (2019). Impact of Characteristics of Firm on Quality of Financial Reporting of Quoted Industrial Goods Companies in Nigeria. Amity Journal of Corporate Governance ADMAA, 4(2), 42–57.
Festusadegbie, F., Oyesolasalawu, R., & Shiyanbola, A. A. (2019). Effect of Corporate Governance on Earnings Quality of Quoted Financial and Non-Financial Firms in Nigeria. 7(3), 40–51.
Gormley, T. A., &Matsa, D. A. (2019). CEO ownership and external governance. Journal of Financial Economics, 134(3), 639-656.
Ikechukwu, C., Nyereugwu, G., Ima, J., David, O., Group, F., Asogwa, S. C., Ikechukwu, C., Nyereugwu, G., Asogwa, C. I., Ofoegbu, G. N., & Nnam, J. I. (2019). Effect of corporate governance board leadership models and attributes on earnings quality of
Issn, S. D. (2018). The effect of accrual earnings , corporate governance, and firm size on earnings persistence of 100 compass index companies listedn 2015-2016. Rieke Pernamasari Accounting Program, Economics and Business Faculty Mercu Buana University – Jakarta, 9(10), 196–205.
Jensen, M.C., &Meckling, W.H, (1976). "Theory of the firm: Managerial behavior, agency costs and ownership structure," Journal of Financial Economics, Elsevier, vol. 3(4), 305-360 DOI: https://doi.org/10.1016/0304-405X(76)90026-X
John E. Core, Wayne R. Guay, Andrew Van Buskirk, (2003) Market valuations in the New Economy: an investigation of what has changed,Journal of Accounting and Economics,Volume 34, Issues 1–3, 2003, Pages 43-67, ISSN 0165-4101. https://doi.org/10.1016/S0165-4101(02)00087-3. DOI: https://doi.org/10.1016/S0165-4101(02)00087-3
Khuong, N. V., Aziz, A., Rahman, A., Thuan, P. Q., Liem, N. T., Huu, L., Anh, T., Thi, C., Thuy, M., Thi, H., & Ly, N. (2022). Earnings Management , Board Composition and Earnings Persistence in Emerging Market. 1–15. DOI: https://doi.org/10.3390/su14031061
Linawati, N., & Halim, R. (2017). the Effect of Financial Performance and Macro Economic Factor To Profitability of Bidder Companies. JurnalManajemen Dan Kewirausahaan, 19(2), 99-105. DOI: https://doi.org/10.9744/jmk.19.2.99-105
McCallum, B. T. (1980). The Significance of Rational Expectations Theory. Challenge, 22(6), 37–43. https://doi.org/10.1080/05775132.1980.11470578 DOI: https://doi.org/10.1080/05775132.1980.11470578
Monks, R. A., &Minow, N. (2011). Corporate governance. John Wiley & Sons. DOI: https://doi.org/10.1002/9781119207238
Nwidobie, B. M. (2014). The random walk theory: An empirical test in the Nigerian Capital Market. Asian Economic and Financial Review, 4(12), 1840-1848.
Ogaluzor, O. I., & Chukwu, G. J. (2022). Board Female Representation and Corporate Earnings Quality in Nigeria Board Female Representation and Corporate Earnings Quality in Nigeria. 1(1), 276–292. https://doi.org/10.6007/IJARAFMS DOI: https://doi.org/10.6007/IJARAFMS/v12-i1/11249
Pa, O., Bassey, I., oh, E., Ojong, N., pala, O., & Chinenye, V. (2019). Accounting Earnings Persistence And Security Valuation Among Quoted Firms In Nigeria. International Journal of Economics and Management Studies, 6(12), 201–213. https://doi.org/10.14445/23939125/ijems-v6i12p123 DOI: https://doi.org/10.14445/23939125/IJEMS-V6I12P123
Park, S. I., Brenner, D. S., Shin, G., Morgan, C. D., Copits, B. A., Chung, H. U., ... & Rogers, J. A. (2015). Soft, stretchable, fully implantable miniaturized optoelectronic systems for wireless optogenetics. Nature biotechnology, 33(12), 1280-1286. DOI: https://doi.org/10.1038/nbt.3415
Salim, S. (2018). Pengaruh Good Corporate Governance, Earnings Persistence dan Accounting Conservatism Terhadap Earnings Quality. 161–174.
The Federal Reserve Board, (march, 2023), joint statement by treasury, federal reserve, and FDIC
Tipurić, D., Dvorski, K., & Delić, M. (2020). Measuring the Quality of Corporate Governance – A Review of Corporate Governance Indices **. 1, 224–241. DOI: https://doi.org/10.56578/jcgirm010114
Watts, R. L. &Leftwich, R. W. (1977). The time series of annual accounting earnings. Journal of Accounting Research, 15(2), 253-271. DOI: https://doi.org/10.2307/2490352
World Bank. Information, Communication Technologies, &infoDev (Program). (2012). Information and communications for development 2012: Maximizing mobile. World Bank Publications.
Wu, Y., Zhang, H., & Wang, D. (2019). The persistence in earnings of Chinese firms: Evidence from the stock market. Pacific-Basin Finance Journa l, 54, 91 – 102.
