Effect of Board Characteristics on Earnings Management of Listed Oil and Gas Companies in Nigeria
This study examined the effect of board characteristics on earnings management in Nigerian listed oil and gas companies. Specifically, it investigates the effect of board size, board member financial expertise, frequency of board meetings, board member tenure, and CEO turnover on earnings management measured by discretionary accruals. The research employed a correlational research design, covering data from 2014 to 2023 oil and gas companies listed on the Nigerian Exchange, with a population of 9 listed oil and gas companies out of which a sample of 8 were purposively selected based on data availability. Secondary data were collected and analyzed using Driscoll-Kraay Standard Error. The findings revealed that frequency of board meetings a significant negative relationship with earnings management, suggesting that increased board engagement enhances financial oversight. Conversely, board members’ tenure and CEO turnover exhibit a significant positive relationship with earnings management, implying that board members’ tenure may reduce monitoring effectiveness, while CEO changes create incentives for financial manipulation. However, board size, board members’ and financial expertise do not show statistically significant effects on earnings management. Based on these findings, the study recommends that companies should encourage frequent board meetings, introduce maximum tenure limits for board members, improve CEO transition governance, and strengthen regulatory oversight to enhance monitoring and reduce earnings manipulation. Future research should examine board composition, focusing on the interaction between financial expertise, governance effectiveness, and the occurrence of earnings manipulation, particularly during CEO turnover
Keywords: Board Size, Board Members' Financial Expertise, Frequency of Board Meetings, Board Members' Tenure, CEO Turnover.
Citation: Adejoh, D., Mohammed, A.Y., & Yusuf, I. (2025). Effect of Board Characteristics on Earnings Management of Listed Oil and Gas Companies in Nigeria. International Journal of Innovative Research in Accounting and Sustainability, 10(2), 107-117.