CHIEF EXECUTIVE OFFICERS’ (CEOs’) EXPERTISE AND THE LIKELIHOOD OF EARNING MANAGEMENT AMONG BANKS IN NIGERIA
Abstract
This study examined the extent to which the likelihood of earnings management is affected by the expertise of Chief Executive Officers (CEOs) in Nigerian banks. The research relied on the ex-post facto design and relied on secondary data that were collated from the financial statements of 12 commercial banks randomly sampled for the study over a 10-year period (2012 – 2021). Analyses of data were done in line with the study’s objective and developed hypothesis and conducted with the application of relevant statistical tools, including summary statistics, correlation analysis, diagnostic tests, and regression analysis. The outcome of the analytical process indicated that CEO expertise exerts a significant inverse influence on the likely occurrence of earnings management in Nigerian banks. The import of this result is that possible increase in the perpetration of earnings management in Nigerian banks cannot be directly attributed to the nature or person of the serving Chief Executive Officers at any point in time; thus, confirming relative level of compliance with relevant governance codes and regulatory standards within the Nigerian banking industry. With this result, this research recommends the sustenance of the multiplicity of regulatory oversights on banks and their respective activities in Nigeria. Also, Corporate Boards alongside their several committees should constantly have their eyes on, maintain, and where necessary, improve on the existing standards, norms and policies in place regarding the appointment and expertise of bank CEOs
Keywords:
Beneish M-Score, Earnings Manipulation, Chief Executive Officers, Commercial Banks, Nigeria, Financial ReportingDownloads
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Copyright (c) 2025 Annah Ajerhuvwu Odechemu, Edirin Jeroh
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