EFFECTS OF BOARD INDEPENDENCE AND INSTITUTIONAL OWNERSHIP ON EARNINGS MANAGEMENT OF LISTED OIL AND GAS MARKETING INDUSTRIES IN NIGERIA
The study examined the effects of Board Independence and Institutional ownership on Earning Management of Oil and Gas Marketing Companies in Nigeria. A total of Eight (8) Oil and Gas Marketing Companies was used, covering seven years period (2010-2016). Data for the study were extracted from the Firms’ audited annual reports and accounts of the companies. Modified Jones Model (1995) was employed for calculating discretionary accruals as proxy for earnings management. Moreover, independence variables are Firm size, and Audit Quality. Data was subjected to detailed analysis through descriptive and inferential statistics with help of STATA software. After running the regression, a robustness test was conducted for validity of statistical inferences. The result revealed that Board Independence and Ownership structure have no significant on Earnings management. It is therefore recommended that The SEC should come up with a bench mark as to the numbers of independent non-executive directors in this Oil and Gas Marketing Companies should have on its board.
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