IMPACT OF BOARD ATTRIBUTES ON EARNINGS QUALITY OF LISTED INSURANCE COMPANIES IN NIGERIA

Abstract

This research examined the impact of board attributes on the earnings quality of Nigerian listed insurance businesses. The study employed documented data from the annual reports and accounts of the sampled companies from 2009 to 2018. The population of the study is made up of all twenty-seven (27) insurance companies listed onthe Nigerian stock exchange, with fifteen (15) selected as the study sample. Using Stata version 14, the data was analyzed using descriptive statistics to obtain summary statistics for the variable, Pearson correlation analysis, and the Multiple Regression approach. It was revealed that the size and independence of the board of directors had a significant impact on the quality of earnings. Female directors and board meetings, on the other hand, have no significant influence on the earnings quality of Nigerian listed insurance companies. As a result, the study concludesthat board characteristics influence the earnings quality of listed Nigerian insurance companies.Hence, the study suggests that investors should pay more attention to companies with a large number of directors, as stipulated by the NAICOM code of corporate governance, which states that the minimum number of board members should be 7 and the maximum number should be 15, in order to minimize earnings manipulation. NAICOM should also ensure that the terms of the code are fully observed in order to improve the quality of earnings of Nigeria's listed insurance companies, in orderto have effective oversight by independent directors.

Keywords

• Board size
• Board Independence
• Women Directors
• Board Meetings
• Earnings Quality