Corporate Governance, Quality of Earnings and Future Stock Returns: Nigeria Experience
The purpose of this study is to examine the quality of earnings, corporate governance and future stock returns. The study employed a longitudinal research design by sampling 25 companies from the non-financial quoted companies in the Nigerian Stock Group for the period of 2015 to 2020. The study conducts descriptive Statistics, Pearson correlation matrix, variance inflation factor and multivariate regressions technique for the empirical analysis. The empirical results show that earnings quality has a significant positive effect on stock returns and board independence has an insignificant negative effect on stock returns while board size has an insignificant positive effect on stock returns. The study recommends that earnings quality should be given priority by management because it positively enhances future stock returns. Keywords: Board independence, board size, corporate governance, earnings quality and stock returns. JEL Classification: G26, G28, M30