Board diversity and earnings’ quality of the listed insurance companies in Nigeria

This study examines the relationship between board diversity (in term of percentage of female board members, educational qualification, independent directors, interlocking directorship, and financial literacy) and earnings quality of listed insurance companies in Nigeria. The study used secondary data from the stock exchange fact books and audited financial statements of the selected companies. We adopted a quantitative research design in which data were analyzed using descriptive and inferential statistics. Three variants of regression model, namely pooled ordinary least square, fixed effects and random effects models were estimated. Results revealed that significant differences exist in board diversity and earnings quality across the listed insurance companies in Nigeria. Also, the impact of board diversity on earnings quality is positive and strong. That is, the higher the company’s board diversity the better the ability to generate quality earnings. The results suggest than insurance companies with large number of women on the board are more likely to generate higher quality earning than those dominated by men. The paper draws the attention of management of listed insurance companies to the need to comply with the code of corporate governance on board diversity to increase the number of women on the board and ensure that the board consists of educationally qualified members, and financial literate members. The study also draws the attention of Nigeria Stock Exchange Group (NSGG) and other regulatory authorities to the need for regulation that will make disclosure of directors’ personal information a regulatory disclosure.