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" Corporate Governance, International Financial Reporting Standards Adoption and Earnings Management Among Listed Non-Financial Firms in Nigeria "
Kadir, Abdulraheem Olayiwola
Lanre, Nassar
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Latin Dissertation
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| Language of Document
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English
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| Record Number
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1106409
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| Doc. No
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TLpq2389322712
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| Main Entry
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Kadir, Abdulraheem Olayiwola
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Lanre, Nassar
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| Title & Author
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Corporate Governance, International Financial Reporting Standards Adoption and Earnings Management Among Listed Non-Financial Firms in Nigeria\ Kadir, Abdulraheem OlayiwolaLanre, Nassar
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| College
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Kwara State University (Nigeria)
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| Date
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2020
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| student score
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2020
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| Degree
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Ph.D.
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| Page No
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198
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| Abstract
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Accounting scandals continue to be recorded around the globe notwithstanding several accounting and financial legislations. These scandals, in some cases, have led to the failure and collapse of large companies such as the Enron, Adelphia, Tyco international, Peregrine systems and the Worldcom. In other cases, such as Lever Brother and Cadbury in Nigeria, the scandals led to loss of billions of naira by investors. All these have been blamed on earnings management. The code of corporate governance was reviewed in 2011 and IFRS was mandatorily adopted in 2012 in an attempt to forestall earnings management menace in Nigeria. This therefore motivates the study to investigate the effect of corporate governance mechanisms, code of corporate governance review and adoption of IFRS on earnings management among Nigerian non-financial listed firms. To achieve this main objective, the specific objectives are to: examine the difference in earnings management practices among Nigeriannon-financial listed firms across sub-sectors; examine the effect of corporate governance mechanisms on accrual-based earnings management activities among Nigeriannon-financial listed firms; examine the role of 2011 code of corporate governance review in the effect of corporate governance mechanism on accrual-based earnings management activities among Nigerian non-financial listed firms; ascertain whether or not the mandatory adoption of IFRS has effectively improved the quality of firms’ corporate governance in reducing accrual-based earnings management activities among Nigeriannon-financial listed firms; examine the effect of corporate governance mechanisms on real earnings management activities among Nigeriannon-financial listed firms; examine the role of 2011 code of corporate governance review in the effect of corporate governance mechanisms on real earnings management activities among Nigerian listed firms; ascertain whether or not the mandatory adoption of IFRS has effectively improved the quality of firms’ corporate governance in reducing real earnings management activities among Nigeriannon-financial listed firms; and investigate whether real earnings management has replaced accrual-based earnings management after the mandatory adoption of IFRS in 2012. An unbalance panel of 391 firm-year observations from annual reports of 72 Nigerian non-financial listed firms (out of a total of 115 firms) between 2008 and 2015 were collected and analyzed employing both fixed and random effects models, as well as panel ANOVA test of means difference. The findings of this study, from the test of means difference, revealed that all earnings management practices, vis: accrual-based; aggregate real; abnormal production costs; and abnormal cash-flow from operations, are significantly different among non-financiallisted firms across various sub-sectors.. For the effect of corporate governance mechanism on accrual-based, the findings revealed that external auditor’s tenure, institutional ownership, CEO duality and external auditor’s reputation significantly affect accrual-based earnings management. For the effect of corporate governance mechanisms on real earnings management, the findings revealed that board independence, audit committee independence, and audit committee meeting significantly affect real earnings management. The study concludes that corporate governance mechanisms influence earnings management and both the Code of corporate governance review and IFRS adoption have moderating role in this effect. From the findings of this study, it is therefore recommended that the benchmark set for corporate governance mechanisms, such as external auditor’s tenure of 10 years, board size of at least 5 directors, board independence of at least one independent director and audit committee independence of at least one independent director should be maintained while kaudit committee sizeshould be set at a minimum of 5 members.
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Accounting
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