Board Attributes and Earnings Management of Listed Depositmoney Banks in Nigeria

The study examines the impact of board attributes on earnings management of listed deposit money banks in Nigeria. Employing an ex-post facto research design, the study examines all nine deposit money banks listed on the Nigerian Exchange (NGX) Group as of December 31, 2023, using census sampling due to the comprehensive availability of financial data. Secondary data were sourced from the annual reports and accounts of these banks for the period 2013 to 2023. The analysis was conducted using a robust random effect (GLS) regression model with STATA 13.0 software. The study reveals that board size and board independence significantly and negatively affect earnings management, whereas board financial expertise has an insignificant negative impact. Consequently, the study recommends that Nigerian deposit money banks enhance board size by incorporating directors with diverse backgrounds and expertise, and increase board independence by appointing more independent directors unaffiliated with the bank’s management. Additionally, banks should integrate financial expertise with other governance characteristics, ensuring boards maintain a balance of independence and diversity to strengthen overall governance and mitigate earnings management.