Board Exclusive and Income Administration in Deposit Money Banks in Nigeria
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Abstract
This study investigates the effects of board attributes income administration among Nigerian banks where income administration is measured using Chang, Shen and Fang model extracted from the annual reports of 14 Deposit Money Banks on Nigerian Stock Exchange over five years period ranging from 2015 to 2020. Panel corrected standard error regression analysis was used to examine the results. The findings indicate that board size, board independence and women directors have significant relationship with income administration. In conclusion, the findings show that, while board independence has positive influence on incomes administration, board size and women directors have negative impact on income administration of banks in Nigeria. Based on the findings obtained, this study therefore recommend that governance codes regulators in Nigeria should emphasize on more board members, more women directors and less non-executive directors provided the aim is to reduce financial manipulation otherwise known as income administration of banks in Nigeria. This is because, strengthening the gender and size of the board could play a role in ensuring effective monitoring of the board and ultimately enhances the reliability and credibility of the information reported to the stakeholders which could improve earnings management of banks in Nigeria.
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