Effect of Board Size on Real Earnings Management of Financial Institutions in Nigeria

Abstract

The study is an assessment of the effect of Board Size on Real Earnings Management of listed firms in Nigeria. The expofacto research design was adopted with reliance on secondary data from annual report of listed firms. The simple random sampling technique was employed in selecting the 31 firms out of 57 firms for 2009-2018 financial years. To carry out this objective three method of panel regression estimation was used which are pool, fixed effect and random effect by Hausman test which was analyzed using E-views 10. The finding shows that board size has no significant impact on real earning management. The study concludes that the board is corporate governance mechanism that reduces earnings manipulation. The study therefore recommends that there is need for effective corporate governance practices in financial institution in Nigeria to contribute to reduce real earnings management and avert possible collapse of financial institution in Nigeria. Finally the regulatory authorities like Security and Exchange Commission (SEC) and Nigerian Stock Exchange (NSE) should enforce strict compliance with corporate governance best practices.