Can corporate governance mechanisms deter earnings management? Evidence from firms listed on the Nigerian Stock Exchange

• Autores: Adedoyin Isola Lawal, Tony I. Nwanji, Oye Olubukoye Opeyemi, Ibrahim Joseph Adama
• Localización: Aestimatio: The IEB International Journal of Finance, ISSN 2173-0164, Nº. 17, 2018, págs. 220-233
• Idioma: inglés
• Títulos paralelos:
  • ¿Los mecanismos de gobernanza corporativa pueden disuadir la gestión de las ganancias? Evidencia a partir de compañías incluidas en la Bolsa deValores de Nigeria
• Enlaces
  • Texto completo (pdf)
• Resumen
  • español

    El debate sobre el impacto del mecanismo de gobierno corporativo en la gestión de los ingresos sigue sin ser concluyente. En este artículo se hace uso de las técnicas de estimación de mínimos cuadrados de dos etapas para examinar la relación entre ambas variables a partir de datos de empresas cotizadas en la Bolsa de Valores de Nigeria entre 2012 y 2016. Se excluyen los datos de la industria financiera debido al peculiar el sistema anual de información financiera del sector. Los resultados obtenidos revelan que, en el mejor de los casos, la relación entre el código de gobierno corporativo y la administración de ingresos es mixta. En concreto, se muestra que el código de gobierno ejerce una influencia negativa en la gestión de las ganancias, mientras que se observa una relación positiva entre la gestión de las ganancias y la propiedad de los internos.

    También se observa que la independencia del Consejo y la independencia de los auditores tienen poco o ningún impacto en la gestión de las ganancias. Por tanto, este estudio recomienda que, para frenar las prácticas de gestión de ingresos, se fortalezca el código de conducta de gobierno de las entidades comerciales y se exija su cumplimiento.

  • English

    The debate on the impact of corporate governance mechanism on earnings management remains inconclusive. The current paper explored the use of Two Stage Least Square (2SLS) estimation techniques to examine the relationship between the two constructs based on data sourced from listed companies on the floor of the Nigerian Stock Exchange between 2012 to 2016. We excluded financial industry data based on the peculiarity of the sector’s annual financial reporting system. Our results reveal that at best the relationship between corporate governance code and earnings management is mixed.

    In specific, it shows that governance code exerts negative influence on earnings management, while a positive relationship was observed to exist between earnings management and Insiders ownership. It was also noted that board independence and auditors’ independence has little or no effect on earnings management. The study therefore recommend that in order to curb earnings management practices, governance code of conduct for business entities should be strengthened and compliance should be enforced.

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