Isaiah Odiba Emmanuel, Abdulmalik Abubakar Yusuf, Halima Shaibu


There has been an increase in interest in board diversity among corporate governance scholars and practitioners. Although, significant study has been committed to corporate governance, few studies exist on board diversity and its link with earning management, especially in emerging economies like that of Nigeria. To bridge this information vacuum, this study studied the influence of board diversity on the earnings management of conglomerate corporations in Nigeria. Board diversity in this study was measured using board gender, board nationality and board education. To find out how conglomerate earnings in Nigeria were affected by factors including gender, nationality, and education of the company's directors, researchers conducted an 8-year study (2014-2021). Secondary data were obtained for the aim of the study. Multiple linear regression is performed in the research as analytical approach while data are handled using STATA statistical software. The study reveals that variety in nationality and degree can greatly lower the level of profits management in a corporation. In terms of managing earnings, gender diversity has no major influence. The study consequently suggests that conglomerate organisations in Nigeria aggressively implement more diverse boards with regard to board nationality and board education as it is connected with reduction on earnings management.


Effect, Board Diversity, Earnings Management, Conglomerate Firms, Nigeria.

Full Text:



Adams, R. B., & Ferreira, D. (2009). Women in the boardroom and their impact on governance and performance. Journal of Financial Economics, 94(2), 291-309.

Adams, R. B., & Funk, P. (2012). Beyond the glass ceiling: Does gender matter? Management Science, 58(2), 219-235.

Ahern, K. R., &Dittmar, A. K. (2012). The changing of the boards: The impact on firm valuation of mandated female board representation. The Quarterly Journal of Economics, 127(1), 137-197.

Beasley, M. S. (1996). An empirical analysis of the relation between the board of director composition and financial statement fraud. Accounting Review, 443-465.

Beasley, M. S., &Salterio, S. E. (2001). The relationship between board characteristics and voluntary improvements in audit committee composition and experience. Contemporary Accounting Research, 18(4), 539-570.

Beatty, A. L., & Harris, D. (1999). The Effects of Taxes, Agency Costs and Information Asymmetry on Earnings Management: A Comparison of Public and Private Firms. The Review of Accounting Studies, 4 (3-4), 299-326.

Bergstresser, D., &Philippon, T. (2006). CEO incentives and earnings management. Journal of Financial Economics, 80(3), 511-529.

Bradbury, M., Mak, Y. T., & Tan, S. M. (2006). Board characteristics, audit committee characteristics and abnormal accruals. Pacific Accounting Review, 18(2), 47-68.

Bruns, W. J., & Merchant, K. A. (1990). The dangerous morality of managing earnings. Strategic Finance, 72(2), 22-30.

Bruynseels, L., &Cardinaels, E. (2013). The audit committee: Management watchdog or personal friend of the CEO? The Accounting Review, 89(1), 113-145.

Burgess, Z., &Tharenou, P. (2002). Women board directors: Characteristics of the few. Journal of Business Ethics, 37(1), 39-49.

Dechow, P.M. &Dichev, I.D. (2002). The quality of accruals and earnings: The role of accrual estimation errors. The Accounting Review, 77 (1), 35-59.

Dechow, P.M. (1993). Accounting earnings and cash flows as measure of firm performance: The role of accounting accruals. Journal of Accounting & Economics, 18 (1), 3-42.

DeFond, M.L., &Jiambalvo, J. (1994). Debt covenant violation and manipulation of accruals. Journal of Accounting and Economics, 17(1), 145-176.

Eisenhardt, K.M. (1989). Agency Theory: An Assessment and Review. The Academy of Management Review, 14 (1), 57-74.

Erhardt, N. L., Werbel, J. D., &Shrader, C.B. (2003). Board of Director Diversity and Firm Financial Performance. Corporate Governance: An International Review, 11 (2), 102-111.

Eulerich, M., Velte, P., &Uum, C. (2014). The impact of management board diversity on corporate performance – an empirical analysis for the German two-tier system. Problems and Perspectives in Management, 12 (1), 25-39.

Francis, J. R., & Wang, D. (2008). The joint effect of investor protection and big 4 audits on earnings quality around the world. Contemporary Accounting Research, 25(1), 157-191.

Graham, J. R., Harvey, C. R., &Rajgopal, S. (2005). The economic implications of corporate financial reporting. Journal of Accounting and Economics, 40(1), 3-73.

Gray, I. & Manson, S. (2011). The Audit Process: Principles, Practice and Case South Western, Cengage Learning. 5th Ed.

Han, S., Kang, T., Salter, S., &Yoo, Y. K. (2010). A cross-country study on the effects of national culture on earnings management. Journal of International Business Studies, 41(1), 123-141.

Kothari, S. P., Leone, A. J., &Wasley, C. E. (2005). Performance matched discretionary accrual measures. Journal of Accounting and Economics, 39(1), 163-197.

Man, C., & Wong, B. (2013). Corporate governance and earnings management: A survey of literature. The Journal of Applied Business Research, 29(2), 391-418.

Michas, P. N. (2011). The importance of audit profession development in emerging market countries. The Accounting Review, 86(5), 1731-1764.

Morris, R.D. (1987). Signaling, Agency Theory and Accounting Policy Choice. Accounting and Business Research, 18(69), 47-56.

Murray, A. I. (1989). Top management group heterogeneity and firm performance. Strategic Management Journal, 10(S1), 125-141.

Nielsen, B.B., & Nielsen, S. (2013). Top management team nationality diversity and firm performance: a multilevel study. Strategic management Journal, (34), 373-383.

Oxelheim, L., &Randoy, T. (2003). The impact of foreign board membership on firm value. Journal of Banking & Finance, 27(12). 431-457.

Peasnell, K.V., Pope, P. & Young, S. (2005). Board monitoring and earnings management: Do outside directors’ influence abnormal accruals? Journal of Business Finance and Accounting, 32(7-8), 1311-1346.

Peni, E. &Vähämaa, S. (2010). Female executives and earnings management. Managerial Finance, 36(7), 629-645.

Raheja, C., (2005). Determinants of board size and composition: a theory of corporate boards. Journal of Financial and Quantitative Analysis, 40(1), 283–306.

Rahman, R.A., Ali, F.H.M., (2006). Board, audit committee, culture and earnings management: Malaysian evidence. Managerial Auditing Journal, 21(7), 783- 804.

Rose, C. (2007). Does female board representation influence firm performance? The Danish evidence. Corporate Governance: An International Review, 15 (2), 404-413.

Roychowdhury, S. (2006). Earnings management through real activities manipulation. Journal of Accounting and Economics, 42(3), 335-370.

Scott, W. R. (2011). Financial accounting theory. Toronto, Ontario, Canada: Pearson Prentice Hall.

Srinidhi, B., Ferdinand, G.A.,&Tsui, J. (2011). Female directors and earnings quality. Contemporary Accounting Research, 28(5), 1610-1644.


  • There are currently no refbacks.

Copyright (c) 2022 Isaiah Odiba Emmanuel, Abdulmalik Abubakar Yusuf, Halima Shaibu










ISSN (PRINT):    2682 - 6135

ISSN (ONLINE): 2682 - 6127





Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.