Browsing by Author "Taleatu, Taofiki Akinwumi"

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Effect of upper echelons’ demographic characteristics on earnings management in troubled non-listed companies in Nigeria
(Cogent Arts & Humanities, 2020) Taleatu, Taofiki Akinwumi; Adetula, Dorcas; Iyoha, Francis Odianonsen
Research has shown that companies in a financial crisis are usually successful in hiding their poor performance through aggressive earnings manage ment at the detriment of stakeholders like investors and loan providers. The wave of current bank loan defaulters rocking the Nigerian banking system afforded a unique opportunity to study earnings management in troubled, non-listed companies in Nigeria to contribute to the attainment of the sustainability goal 9 on industriali zation in developing countries. This study aimed at investigating the influence of top management’s demographic characteristics on corporate earnings management. Using Slovin’s 1960 sampling size formula, 80 non-listed companies were selected for the study from the list of 98 non-listed companies among the debtors of Assets Management Corporation of Nigeria (AMCON). Copies of a questionnaire were administered on 240 financial officers (3 participants per company). Descriptive statistics involved computation of percentages, means and standard deviations while hypotheses were tested with structural equation modelling using AMOS SPSS. Findings revealed a relatively high level of earnings management with significant positive relationships with age, tenure, educational level and gender of the CFOs. Lower earnings management was observed among middle-aged, female, more educated and short-tenure CFOs. The study concludes that there is a positive sig nificant relationship between upper echelons’ demographic characteristics and earnings management in troubled, non-listed companies in Nigeria. The study recommends the appointment of more middle-aged, female and financially literate individuals into the upper echelons’ positions with a moderate tenure of five to ten years to promote corporate sustainable development in Nigeria.
MODERATING EFFECT OF GOVERNANCE QUALITY ON THE RELATIONSHIP BETWEEN CFOs’ NARCISSISM AND CORPORATE EARNINGS MANAGEMENT IN NIGERIA
(Journal of Management Information and Decision Sciences, 2020) Taleatu, Taofiki Akinwumi; Adetula, Dorcas; Iyoha, Francis Odianonsen
Upper echelons in an organization such as chief financial officers (CFOs) have been implicated in corporate fraudulent earnings management. Their narcissistic traits have also been linked with unethical accounting practices while little is known on the moderating effect of corporate governance quality on this relationship. Hence, this study investigated the moderating effect of corporate governance quality on the relationship between CFOs' narcissistic trait and earnings management in troubled, non-listed companies in Nigeria. The primary data for the study was obtained from the survey of 80 non-listed companies indebted to the Asset Management Corporation of Nigeria (AMCON). The survey involved the distribution of copies of a structured questionnaire to two hundred and forty (240) CFOs and other financial officers in the sampled companies. Two hundred and four (204) copies of the questionnaire, which represents a response rate of 85%, were found suitable for data analysis. Descriptive statistics involves the computation of means and standard deviations. Moderated regression analysis was employed to test the hypothesis of the study. Our findings revealed high CFOs' narcissism (Mean = 3.6961, SD = 1.03428, Min = 1, Max = 5), upward earnings management (Mean = 3.8137, SD = 1.00472, Min = 1, Max = 5) and moderate corporate governance quality (Mean = 3.2353, SD = 1.25299, Min = 1, Max = 5). The study also revealed a significant positive relationship between earnings management and CFOs' narcissistic trait (beta = 0.636, t-value = 21.628, P<.05, Sig. = 0.000). A significant negative relationship was observed between corporate governance quality and earnings management (beta = -.360, t value = -12.251, P<0.05, Sig. = 0.000). However, further finding revealed that corporate governance quality has a significant moderating effect on the relationship between CFOs' narcissistic trait and corporate earnings management (beta = 0.145, t-value = 9.582, P<0.05, Sig. = 0.000). The policy implications of these outcomes include the need to strengthen corporate governance quality in non-listed companies in Nigeria. Consequently, the study recommends sensitization of the stakeholders of non-listed companies in Nigeria on the implementation of the Nigerian Code of Corporate Governance 2018 to reduce unethical accounting practices and promote corporate financial reporting quality in the country.