IMPACT OF CEOs' CHARACTERISTICS ON EARNINGS MANAGEMENT OF LISTED DEPOSIT MONEY BANKS IN NIGERIA; MODERATED BY AUDIT QUALITY

Authors

  • SAHEED BABATUNDE ANAN University, Kwall, Pleateau State Author
  • FAROUK ADEIZA MUSA ANAN University Kwall Author
  • DAGWOM YOHANNA DANG ANAN University, Kwall Author

DOI:

https://doi.org/10.65922/5wh1f007

Abstract

Quality of audit engagement and CEOs' attributes are believed to reduce the earnings management practice. Therefore, the study examines the impact of CEOs' characteristics on earnings management of listed deposit money banks in Nigeria moderated by audit quality. To describe the pattern of the research variables, measure of central tendency; mean and standard deviation were employed while inferential statistics using panel data regression was used to test formulated hypotheses. Secondary data source was employed and extracted from the banks' published financial statements covering the period from 2009-2023. Preliminary estimation tests, including heteroscedasticity, multicollinearity and normality were carried out to validate the results. CEOs' characteristic represented by CEOs' tenure and CEOs' reputation while audit quality represents moderating variable. Loan loss provision model was used to measure earnings management. The findings revealed a positive and significant effect of CEOs' tenure on earnings management while CEOs' reputation was negatively significant. And after moderation with audit quality; CEOs' tenure and reputation revealed significant and negative effect on earnings management. The study concluded that audit quality significantly moderates the impact of CEOs' attributes on earnings management of Nigeria deposit money bank. This implies that in order to ensure that the management acts in the best interest of shareholders, engagement of big 4 audit firms is of importance to reduce the menace of earnings management practice in Nigeria deposit money banks. The study therefore recommends younger aged individual with high level of both academic and professional qualifications be considered for the position of CEOs' of deposit money banks in Nigeria, engagement of high-profile audit firm for annual statutory audit with adequate regulatory backing to curb client influence.

Keywords: CEOs characteristics, Earnings management and Audit quality.

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Author Biographies

  • SAHEED BABATUNDE, ANAN University, Kwall, Pleateau State

    Department of Auditing and Forensic Accounting.

  • FAROUK ADEIZA MUSA , ANAN University Kwall

    Department of Auditing and Forensic Accounting

  • DAGWOM YOHANNA DANG, ANAN University, Kwall

    Department of Auditing and Forensic Accounting

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Published

2025-10-30

Issue

Vol. 2 No. 3 (2025): ANUK College of Private Sector Accounting Journal

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How to Cite

SAHEED, B., MUSA, F. A., & DAGWOM, Y. D. (2025). IMPACT OF CEOs’ CHARACTERISTICS ON EARNINGS MANAGEMENT OF LISTED DEPOSIT MONEY BANKS IN NIGERIA; MODERATED BY AUDIT QUALITY. ANUK College of Private Sector Accounting Journal, 2(3), 75-86. https://doi.org/10.65922/5wh1f007

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