CHIEF EXECUTIVE OFFICERS’ (CEOs) ATTRIBUTES AND REAL EARNINGS MANAGEMENT OF LISTED OIL AND GAS COMPANIES IN NIGERIA

Authors

  • OZAH, A.N. MSc. Candidate, Department of Accounting, Delta State University, Abraka, Nigeria
  • OKOLIE, A.O. FCA Prof. of Accounting, Department of Accounting, Delta State University, Abraka , Nigeria

Abstract

This study evaluated the effects of CEO attributes on real earnings management of oil and gas companies quoted on the Nigerian Exchange Group. Data were collected on ten (10) quoted oil and gas companies from 2012-2021 and panel data methodology was adopted. Six major diagnostic tests were conducted before the main result. The study reported that, CEO gender (coef= -0.250062 and p-value=0.0014<5%) and CEO expertise (coef= -0.691509 and p-value=0.0017<5%) have     negative but significant effect on real earnings management. Meanwhile, CEO duality (coef= 0.014897 and p- value=0.5250>5%) has a positive but minimal impact on real earnings management. However, CEO ownership (coef=0.236631 and p-value=0.0161<5%) increases real earnings management activities significantly. The study concluded that the CEO attributes have mixed relationship with real earnings management of oil and gas companies in Nigeria. Consequently, more females CEOs should be given CEO positions as they tend to reduce real earnings management practices to a very large extent. Again, those that have the authority to appoint CEOs should consider people with financial expertise to emerge CEOs positions. The inclusion of CEO experts into the model helps to bridge the missing link in CEO attributes and real earnings management studies.

Keywords: CEO Attributes; CEO Duality, CEO Expertise; CEO Ownership; CEO Gender Diversity; Real Earnings Management.

JEL Classification:M49

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Published

03-12-2023 — Updated on 23-12-2023

Issue

Vol. 1 No. 3 (2023)

Section

Articles

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