CORPORATE GOVERNANCE AND EARNINGS PERSISTENCE OF LISTED NIGERIAN FIRMS

Information about the performance of firms is very important to investors for making investment decision. However, investors of firms in developing economies particularly in Nigeria are faced with the problem of access to relevant and reliable information. In view of this, this study examines the e...

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Main Authors: ABOGUN Segun, Mubarak Orilonise, ISAH Dauda, Abubakar Sadiq KASUM
Format: Article
Language:English
Published: Universidad Francisco de Paula Santander Ocaña 2024-07-01
Series:Revista Científica Profundidad Construyendo Futuro
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Online Access:https://revistas.ufps.edu.co/index.php/profundidad/article/view/4776
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author ABOGUN Segun
Mubarak Orilonise
ISAH Dauda
Abubakar Sadiq KASUM
author_facet ABOGUN Segun
Mubarak Orilonise
ISAH Dauda
Abubakar Sadiq KASUM
author_sort ABOGUN Segun
collection DOAJ
description Information about the performance of firms is very important to investors for making investment decision. However, investors of firms in developing economies particularly in Nigeria are faced with the problem of access to relevant and reliable information. In view of this, this study examines the effect corporate governance has on earnings persistence of Nigerian listed firms. This research employed the explanatory research design. It generated sampling frame for companies that are listed in 2002 and continues to be listed up to 2021, the entire 51 companies were used, using census sampling technique. Secondary data was employed for this study, extracted from the companies’ audited annual reports. The data obtained were analyzed using dynamic panel regression model. Findings from this study show that: (i) previous year earnings significantly influence current year earnings. (ii) Corporate governance has significant negative influence on the earnings of Nigeria listed firms. (iii) Current year earnings are significantly influenced by the interaction between corporate governance and the past year’s earnings. The study recommends the need for Nigeria listed firms to focus on improving their governance structures through appointing independent directors to the board, establishing effective internal control systems, and ensuring that executive compensation is aligned with long-term performance.
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publisher Universidad Francisco de Paula Santander Ocaña
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series Revista Científica Profundidad Construyendo Futuro
spelling doaj-art-ad37289a4b284144bd1a54ea544585312025-08-20T01:55:30ZengUniversidad Francisco de Paula Santander OcañaRevista Científica Profundidad Construyendo Futuro2422-25182024-07-01212110.22463/24221783.4776CORPORATE GOVERNANCE AND EARNINGS PERSISTENCE OF LISTED NIGERIAN FIRMSABOGUN Segun0Mubarak OriloniseISAH DaudaAbubakar Sadiq KASUMUniversity of Ilorin Information about the performance of firms is very important to investors for making investment decision. However, investors of firms in developing economies particularly in Nigeria are faced with the problem of access to relevant and reliable information. In view of this, this study examines the effect corporate governance has on earnings persistence of Nigerian listed firms. This research employed the explanatory research design. It generated sampling frame for companies that are listed in 2002 and continues to be listed up to 2021, the entire 51 companies were used, using census sampling technique. Secondary data was employed for this study, extracted from the companies’ audited annual reports. The data obtained were analyzed using dynamic panel regression model. Findings from this study show that: (i) previous year earnings significantly influence current year earnings. (ii) Corporate governance has significant negative influence on the earnings of Nigeria listed firms. (iii) Current year earnings are significantly influenced by the interaction between corporate governance and the past year’s earnings. The study recommends the need for Nigeria listed firms to focus on improving their governance structures through appointing independent directors to the board, establishing effective internal control systems, and ensuring that executive compensation is aligned with long-term performance. https://revistas.ufps.edu.co/index.php/profundidad/article/view/4776Corporate GovernanceEarnings persistenceFirm performancegovernance structureNigeria
spellingShingle ABOGUN Segun
Mubarak Orilonise
ISAH Dauda
Abubakar Sadiq KASUM
CORPORATE GOVERNANCE AND EARNINGS PERSISTENCE OF LISTED NIGERIAN FIRMS
Revista Científica Profundidad Construyendo Futuro
Corporate Governance
Earnings persistence
Firm performance
governance structure
Nigeria
title CORPORATE GOVERNANCE AND EARNINGS PERSISTENCE OF LISTED NIGERIAN FIRMS
title_full CORPORATE GOVERNANCE AND EARNINGS PERSISTENCE OF LISTED NIGERIAN FIRMS
title_fullStr CORPORATE GOVERNANCE AND EARNINGS PERSISTENCE OF LISTED NIGERIAN FIRMS
title_full_unstemmed CORPORATE GOVERNANCE AND EARNINGS PERSISTENCE OF LISTED NIGERIAN FIRMS
title_short CORPORATE GOVERNANCE AND EARNINGS PERSISTENCE OF LISTED NIGERIAN FIRMS
title_sort corporate governance and earnings persistence of listed nigerian firms
topic Corporate Governance
Earnings persistence
Firm performance
governance structure
Nigeria
url https://revistas.ufps.edu.co/index.php/profundidad/article/view/4776
work_keys_str_mv AT abogunsegun corporategovernanceandearningspersistenceoflistednigerianfirms
AT mubarakorilonise corporategovernanceandearningspersistenceoflistednigerianfirms
AT isahdauda corporategovernanceandearningspersistenceoflistednigerianfirms
AT abubakarsadiqkasum corporategovernanceandearningspersistenceoflistednigerianfirms