2023 PUBLICATION

IMPACT OF OWNERSHIP STRUCTURE ON EARNINGS MANAGEMENT OF LISTED DEPOSIT MONEY BANKS IN NIGERIA

Abstract

This study examined the impact of ownership structure on earnings management of listed deposit money banks in Nigeria. Ownership structure as the independent variable was proxied using managerial ownership, institutional ownership, foreign ownership and ownership concentration while the dependent variable (earnings management) was proxied using the discretionary loan loss provision.  On the methodology of the study, correlational and ex-post facto research designs were employed. The population of the study was fourteen (14) deposit money banks listed on the NSE as December, 2020 out of which twelve (12) banks were sampled using the purposive sampling technique. Data collected from the published annual reports and accounts of the sampled banks were analysed using the multiple regression. This was applied using STATA 16. The result of the analysis revealed that, managerial ownership and ownership concentration had significant impact on earnings management. Institutional ownership and foreign ownership were found to have no significant impact on earnings management of listed deposit money bank in Nigeria. The study thus recommends that regulators of deposit money banks monitor managerial ownership within the sector as high ownership could lead to earnings management by managers. In addition, the recommends that concentration on the hands of few individuals should not be encourage as it could lead to the control the distribution of earnings which may in the long run encourage earnings management.

Keywords: Ownership Structure, Earnings Management, Leverage, Firm size, Deposit money banks 

Authors:

Musa Rapheal

Prof. Benjamin Kumai Gugong

Murtala Abdullahi