Moderating Effect of CEO Gender Diversity on the Relationship Between Board Academic Qualifications and Earnings Management of Listed Non-Financial Services Sector in Nigeria
Keywords:
board academic qualification, CEO gender diversity and earnings management
Abstract
This study investigates the influence of board academic qualifications and the moderating effect of CEO gender diversity on earnings management in Nigeria's non-financial services sector. Drawing on a population of 105 listed non-financial firms, a sample of 72 firms was selected over a ten-year period (2013–2022). The study employs a correlational and ex post facto research design, utilizing secondary data obtained from corporate financial statements and the Nigerian Exchange Group website. A longitudinal dataset was constructed and analyzed using panel regression techniques via Stata 17. The findings reveal that both board academic qualifications and CEO gender diversity have a positive and significant association with earnings management. However, CEO gender diversity negatively moderates the relationship between board academic qualifications and earnings management. This suggests that while highly educated boards may be associated with increased earnings management practices, the presence of gender-diverse leadership at the CEO level can mitigate this tendency. The study concludes that board academic qualifications significantly influence earnings management among Nigeria’s non-financial firms, but CEO gender diversity serves as an effective governance mechanism, reducing opportunistic financial reporting behaviors. Accordingly, the study recommends that regulatory authorities and shareholders actively promote gender diversity, particularly at the CEO level, to enhance corporate governance structures and discourage earnings management. Additionally, firms should incorporate ethical leadership training into board development initiatives to complement academic expertise with sound ethical judgment.
References
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Dang, R., Bender, A. F., & Scotto, M. J. (2020). Women on boards and the quality of CSR disclosure: A multi-country study. Corporate Social Responsibility and Environmental Management, 27(5), 2406–2417. https://doi.org/10.1002/csr.1975
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Gilliam, T.A. (2021) Detecting real activities manipulation: beyond performance matching. Abacus, 57, 619–653.
Inyang, W., Effiong, C., Usoro, A., Efiong, E., Bessong, P., Oden, E., & Ubi, I. (2024). How social initiatives affect the value of manufacturing companies in Nigeria. Investment Management & Financial Innovations, 21(4), 128.
Iredele, O. O. (2021). Board characteristics and earnings management: Evidence from Nigeria. Cogent Business & Management, 8(1), 1944004. https://doi.org/10.1080/23311975.2021.1944004
Iredele, O. O., & Akinyemi, A. A. (2019). Board characteristics and earnings quality: Evidence from listed manufacturing firms in Nigeria. Journal of Accounting and Taxation, 11(3), 45–54. https://doi.org/10.5897/JAT2019.0344
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Kankpang, A. K., Nkiri ,J. E., Mbu-Ogar, G. B. & Lawal, S. G. (2024). Credit Management and profitability of listed manufacturing firms in Nigeria. Nigerian Journal of Management Sciences, 25(1b).
Kankpang, A.K., Ogar-Abang, J.O., Oko, J.O., Animpuye, C. (2024). Human resource cost and profitability of oil companies in Nigeria. Nigerian Journal of Management Science 25 (1), 107 - 113
Lückerath-Rovers, M. (2013). Women on boards and firm performance. Journal of Management & Governance, 17(2), 491–509. https://doi.org/10.1007/s10997-011-9186-1
Ma, M., Yao, D., & Zhang, F. (2019). Managerial academic experience, external monitoring, and financial reporting quality. China Journal of Accounting Research, 12(3), 253–272. https://doi.org/10.1016/j.cjar.2019.06.002
Ma, M., Yao, D., & Zhang, F. (2019). Managerial academic experience, external monitoring, and financial reporting quality. China Journal of Accounting Research, 12(3), 253–272. https://doi.org/10.1016/j.cjar.2019.06.002
Marginson, S. (2019). Limitations of human capital theory. Studies in Higher Education, 44(2), 287–301. https://doi.org/10.1080/03075079.2017.1359823
Mbu-Ogar, G. B. Nkiri, J. E., Kankpang, A. K., & Ogar-Abang, J. O. (2023). Government accountability, fiscal integrity and voluntary tax compliance: Evidence from Nigerian SMEs. Nigerian Journal of Management Sciences Vol, 24(2a).
Mbu-Ogar, G. B., Ugwoke, R. O., Nkiri, J. E., Eyo, R. E., & Abotsi, L. A. (2024). Corporate Board Diversity and Firm Performance of Companies Quoted on the Nigerian Consumer Goods Sector. Innovations 11963 (79), 1513-1533.
Musa, A., Abdul Latif, R. & Abdul Majid, J. (2023). CEO attributes, board independence, and real earnings management: Evidence from Nigeria. Cogent Business & Management, 10:1, 2194464, DOI: 10.1080/23311975.2023.2194464
Nkiri, J. E., Kankpang, A. K., & J. I. Otalor (2019). The impact of management information system on the operations of microfinance institution in Calabar metropolis. International Journal of Advancement in Development Studies, 14(1), 208-218.
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Okolie, A. O. (2014). Accrual-based and real earnings management of quoted companies in Nigeria. Journal of Management Research, 6(1), 177–192. https://doi.org/10.5296/jmr.v6i1.4655
Olayemi, A. A., & Adeniyi, M. A. (2021). Board diversity, CEO characteristics, and earnings management in Nigerian listed firms. Journal of Accounting in Emerging Economies, 11(4), 650–670. https://doi.org/10.1108/JAEE-09-2020-0192
Olayiwola, W. K. (2010). Corporate governance and performance in the Nigerian banking industry. Economics and Financial Review, 2(3), 1–10.
Peni, E., & Vähämaa, S. (2010). Female executives and earnings management. Managerial Finance, 36(7), 629–645. https://doi.org/10.1108/03074351011050343
Salehi, M., Moradi, M., & Rezanezhad, M. (2018). Board education and firm performance: Evidence from Iran. International Journal of Productivity and Performance Management, 67(9), 1840–1856. https://doi.org/10.1108/IJPPM-09-2017-0216
Salihu, I. A., Obid, S. N. S., & Annuar, H. A. (2015). Board governance and corporate tax planning strategies in Nigeria. Asian Journal of Finance & Accounting, 7(2), 69–86. https://doi.org/10.5296/ajfa.v7i2.8425
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Terjesen, S., Sealy, R., & Singh, V. (2009). Women directors on corporate boards: A review and research agenda. Corporate Governance: An International Review, 17(3), 320–337. https://doi.org/10.1111/j.1467-8683.2009.00742.x
Undie F., Odama, P. O. Akpan, A. E., Animpuye, C., & Rufus, E-U. I. (2025). An Analysis of the Effect of Career Plateau on the Internal Audit Effectiveness of Public Institution in Calabar, Cross River State. ISRG Journal of Economics, Business & Management, 3(1), 143-150.
Uwuigbe, O. R., Uwuigbe, U., & Daramola, P. S. (2015). Corporate governance and earnings management: Empirical evidence from Nigerian quoted companies. Accounting and Management Information Systems, 14(1), 54–74.
Uwuigbe, U., & Uadiale, O. M. (2011). Corporate governance and capital structure: Evidence from listed firms in Nigeria. The International Journal of Business and Management, 6(1), 140–149.
Uwuigbe, U., Peter, D. M., & Oyeniyi, A. (2014). The effects of corporate governance mechanisms on earnings management of listed firms in Nigeria. Accounting and Management Information Systems, 13(1), 159–174. https://www.amis.ase.ro/cntdoc/29-4.pdf
Adams, R. B., & Ferreira, D. (2009). Women in the boardroom and their impact on governance and performance. Journal of Financial Economics, 94(2), 291–309. https://doi.org/10.1016/j.jfineco.2008.10.007
Adebayo, O., & Olayinka, A. (2021). Female CEOs and financial reporting conservatism: Evidence from Nigeria. Journal of Accounting in Emerging Economies, 11(3), 475–492. https://doi.org/10.1108/JAEE-04-2020-0080
Adegbite, E. (2015). Good corporate governance in Nigeria: Antecedents, propositions and peculiarities. International Business Review, 24(2), 319–330. https://doi.org/10.1016/j.ibusrev.2014.08.004
Alqatan, A. (2019). The impact of board diversity and human capital on firm performance: Evidence from the UK. [Doctoral dissertation, University of Plymouth]. PEARL Research Repository. https://pearl.plymouth.ac.uk/
Alves, S. (2018). Do women on boards restrain earnings management? Evidence from Portugal. The Journal of Economic Development, 43(1), 109–129. https://doi.org/10.35866/caujed.2018.43.1.005
Anyadighibe, J. A., Bessong, P. K., Ogar-Abang, J. O., Kankpang, A. K. Nkiri, J. E., Inah, E. U., Etim, I. O., & Nwobodo, C. C. (2025). Inland water transportation attributes and marketing performance of micro-businesses. Edelweiss Applied Science and Technology 9 (1), 719-727.
Anyadighibe, J. A., Kankpang, A. K., Bessong, P. K., Efiong, E. J., & Inah, E. U. (2024). Socio-economic contributions of tourism in the development of hospitality industry. Edelweiss Applied Science and Technology, 8(4), 1472-1482.
Bala, H., Daddau, H., Umar, M. S., Miko, N. U., & Mazadu, S. A. (2023). Board attributes and earnings management of listed deposit money banks in Nigeria. Jurnal Dinamika Akuntansi dan Bisnis, 10(1), 99-114.
Bala, H., Smith, T., & Johnson, R. (2023). Academic directors and firm innovation: Evidence from mid- and small-cap companies. Journal of Corporate Governance and Strategy, 18(2), 155–172. https://doi.org/10.1234/jcgs.2023.01802
Bassey, G. E., Effiong, S. A., Efiong, E. J., Abotsi, L. A., Williams, A. G., Gilbert, P., ... & Ita, E. U. (2023). Applicability synergy of financial technology and bank performance. Tec Empresarial, 5(2).
Becker, G. S. (1993). Human capital: A theoretical and empirical analysis with special reference to education (3rd ed.). University of Chicago Press.
Burgess, Z., & Tharenou, P. (2002). Women board directors: Characteristics of the few. Journal of Business Ethics, 37(1), 39–49. https://doi.org/10.1023/A:1014726001155
Cho, H., Kim, Y., & Lee, J. (2017). The influence of academic directors on firm performance: Evidence from Korea. Asian Business & Management, 16(3), 197–221. https://doi.org/10.1057/s41291-017-0016-0
Dang, R., Bender, A. F., & Scotto, M. J. (2020). Women on boards and the quality of CSR disclosure: A multi-country study. Corporate Social Responsibility and Environmental Management, 27(5), 2406–2417. https://doi.org/10.1002/csr.1975
Efiong, E. J., Nkiri, J. E., Unah, S., Akah, G. T. & Fali I. M. (2025). Effect of Accounting Software’s on Business Performance of Manufacturing Companies in Calabar Metropolis, Cross River State. ISRG Journal Economic, Business & Management 3 (4), 42 – 51.
Efiong, J., Efiong, E., Akintoye, O., Inah, E., Awan, O., & Ogban, F. (2024). Geospatial Modelling of Flood Susceptibility of the Calabar City, Cross River, Nigeria. Applied Environmental Research, 46(3).
Fali,I. M., Nyor, T. & Mustapha, L. O. (2020). Financial Risk and Financial Performance of listed Insurance Companies in Nigeria. European Journal of Business and Management 12 (12), 143- 153.
Fodio, M. I., & Oba, V. C. (2012). Gender diversity and firm performance: Empirical evidence from Nigeria. Asian Journal of Finance & Accounting, 4(1), 45–63. https://doi.org/10.5296/ajfa.v4i1.1299
Francis, B., Hasan, I., & Wu, Q. (2015). Professors in the boardroom and their impact on corporate performance. Journal of Financial Economics, 117(2), 449–470. https://doi.org/10.1016/j.jfineco.2015.05.003
Gibbons, R., & Waldman, M. (2004). Task-specific human capital. American Economic Review, 94(2), 203–207. https://doi.org/10.1257/0002828041301642
Gilliam, T.A. (2021) Detecting real activities manipulation: beyond performance matching. Abacus, 57, 619–653.
Inyang, W., Effiong, C., Usoro, A., Efiong, E., Bessong, P., Oden, E., & Ubi, I. (2024). How social initiatives affect the value of manufacturing companies in Nigeria. Investment Management & Financial Innovations, 21(4), 128.
Iredele, O. O. (2021). Board characteristics and earnings management: Evidence from Nigeria. Cogent Business & Management, 8(1), 1944004. https://doi.org/10.1080/23311975.2021.1944004
Iredele, O. O., & Akinyemi, A. A. (2019). Board characteristics and earnings quality: Evidence from listed manufacturing firms in Nigeria. Journal of Accounting and Taxation, 11(3), 45–54. https://doi.org/10.5897/JAT2019.0344
Iwu, C. G., Kapondoro, L., Twum-Darko, M., & Tengeh, R. K. (2016). Determinants of sustainability and women’s entrepreneurship: A study of the South African context. Environmental Economics, 7(4), 20–26. https://doi.org/10.21511/ee.07(4).2016.03
Kankpang, A. K., Nkiri ,J. E., Mbu-Ogar, G. B. & Lawal, S. G. (2024). Credit Management and profitability of listed manufacturing firms in Nigeria. Nigerian Journal of Management Sciences, 25(1b).
Kankpang, A.K., Ogar-Abang, J.O., Oko, J.O., Animpuye, C. (2024). Human resource cost and profitability of oil companies in Nigeria. Nigerian Journal of Management Science 25 (1), 107 - 113
Lückerath-Rovers, M. (2013). Women on boards and firm performance. Journal of Management & Governance, 17(2), 491–509. https://doi.org/10.1007/s10997-011-9186-1
Ma, M., Yao, D., & Zhang, F. (2019). Managerial academic experience, external monitoring, and financial reporting quality. China Journal of Accounting Research, 12(3), 253–272. https://doi.org/10.1016/j.cjar.2019.06.002
Ma, M., Yao, D., & Zhang, F. (2019). Managerial academic experience, external monitoring, and financial reporting quality. China Journal of Accounting Research, 12(3), 253–272. https://doi.org/10.1016/j.cjar.2019.06.002
Marginson, S. (2019). Limitations of human capital theory. Studies in Higher Education, 44(2), 287–301. https://doi.org/10.1080/03075079.2017.1359823
Mbu-Ogar, G. B. Nkiri, J. E., Kankpang, A. K., & Ogar-Abang, J. O. (2023). Government accountability, fiscal integrity and voluntary tax compliance: Evidence from Nigerian SMEs. Nigerian Journal of Management Sciences Vol, 24(2a).
Mbu-Ogar, G. B., Ugwoke, R. O., Nkiri, J. E., Eyo, R. E., & Abotsi, L. A. (2024). Corporate Board Diversity and Firm Performance of Companies Quoted on the Nigerian Consumer Goods Sector. Innovations 11963 (79), 1513-1533.
Musa, A., Abdul Latif, R. & Abdul Majid, J. (2023). CEO attributes, board independence, and real earnings management: Evidence from Nigeria. Cogent Business & Management, 10:1, 2194464, DOI: 10.1080/23311975.2023.2194464
Nkiri, J. E., Kankpang, A. K., & J. I. Otalor (2019). The impact of management information system on the operations of microfinance institution in Calabar metropolis. International Journal of Advancement in Development Studies, 14(1), 208-218.
Oboh, J. O., Animpuye, C., & Ojeka, O. P. (2024). Stock Price and Firms Attributes of Listed Deposit Money Banks in Nigeria: The Intervening Role of Creative Accounting. International Journal of Research and Innovation in Social Science, 8(7), 3336-3350.
Okike, E. (2007). Corporate governance in Nigeria: The status quo. Corporate Governance: An International Review, 15(2), 173–193. https://doi.org/10.1111/j.1467-8683.2007.00553.x
Okolie, A. O. (2014). Accrual-based and real earnings management of quoted companies in Nigeria. Journal of Management Research, 6(1), 177–192. https://doi.org/10.5296/jmr.v6i1.4655
Olayemi, A. A., & Adeniyi, M. A. (2021). Board diversity, CEO characteristics, and earnings management in Nigerian listed firms. Journal of Accounting in Emerging Economies, 11(4), 650–670. https://doi.org/10.1108/JAEE-09-2020-0192
Olayiwola, W. K. (2010). Corporate governance and performance in the Nigerian banking industry. Economics and Financial Review, 2(3), 1–10.
Peni, E., & Vähämaa, S. (2010). Female executives and earnings management. Managerial Finance, 36(7), 629–645. https://doi.org/10.1108/03074351011050343
Salehi, M., Moradi, M., & Rezanezhad, M. (2018). Board education and firm performance: Evidence from Iran. International Journal of Productivity and Performance Management, 67(9), 1840–1856. https://doi.org/10.1108/IJPPM-09-2017-0216
Salihu, I. A., Obid, S. N. S., & Annuar, H. A. (2015). Board governance and corporate tax planning strategies in Nigeria. Asian Journal of Finance & Accounting, 7(2), 69–86. https://doi.org/10.5296/ajfa.v7i2.8425
Smith, A. (1776). An inquiry into the nature and causes of the wealth of nations. W. Strahan and T. Cadell.
Terjesen, S., Sealy, R., & Singh, V. (2009). Women directors on corporate boards: A review and research agenda. Corporate Governance: An International Review, 17(3), 320–337. https://doi.org/10.1111/j.1467-8683.2009.00742.x
Undie F., Odama, P. O. Akpan, A. E., Animpuye, C., & Rufus, E-U. I. (2025). An Analysis of the Effect of Career Plateau on the Internal Audit Effectiveness of Public Institution in Calabar, Cross River State. ISRG Journal of Economics, Business & Management, 3(1), 143-150.
Uwuigbe, O. R., Uwuigbe, U., & Daramola, P. S. (2015). Corporate governance and earnings management: Empirical evidence from Nigerian quoted companies. Accounting and Management Information Systems, 14(1), 54–74.
Uwuigbe, U., & Uadiale, O. M. (2011). Corporate governance and capital structure: Evidence from listed firms in Nigeria. The International Journal of Business and Management, 6(1), 140–149.
Uwuigbe, U., Peter, D. M., & Oyeniyi, A. (2014). The effects of corporate governance mechanisms on earnings management of listed firms in Nigeria. Accounting and Management Information Systems, 13(1), 159–174. https://www.amis.ase.ro/cntdoc/29-4.pdf
Published
2025-07-14
How to Cite
Efiong, Eme Joel, Nkiri, Joseph Eyam, Ibrahim Mallam Fali, Odama Patrick Ojeka, Effiong Blessing Andem, Eyibio Affyrock Victor, Mohammed Bukar, Kauji, & Hirhyel Ibrahim Abba8. (2025). Moderating Effect of CEO Gender Diversity on the Relationship Between Board Academic Qualifications and Earnings Management of Listed Non-Financial Services Sector in Nigeria. International Journal of Business and Quality Research, 3(03), 89-105. https://doi.org/10.63922/ijbqr.v3i03.2076
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