CEOs' CHARACTERISTICS, AUDIT QUALITY AND EARNINGS MANAGEMENT OF LISTED DEPOSIT MONEY BANKS IN NIGERIA
DOI:
https://doi.org/10.65922/z4tcrd45Abstract
The urgent need to eliminate the menace of earnings management practice in banking sector within economy cannot be overemphasized through combined efforts of certain attributes of CEOs and engagement of high quality audit firms. Therefore, the study examines the impact of CEOs' characteristics, audit quality on earnings management of listed deposit money banks in Nigeria. To describe the pattern of the research variables, measure of central tendency; mean and standard deviation were employed while inferential statistics using panel data regression was used to test formulated hypotheses. Secondary data source was employed and extracted from the banks' published financial statements covering the period from 2009-2023. Loan loss provision model was used to measure earnings management. The findings revealed a negative and significant effect of CEOs' attributes and audit quality on earnings management. Specifically, CEOs' age, Ownership, compensation and audit quality revealed a positive and significant effect on earnings management while CEOs' reputation was negatively significant. The study therefore recommends individual with high level of both academic and professional qualifications be considered for the position of CEOs' of deposit money banks in Nigeria and engagement of high-profile audit firm for annual statutory audit with adequate regulatory backing to curb client influence.
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Keywords: CEOs' characteristics, Earnings management and Audit quality.
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