This paper examines the impact of both, family affiliation and related party transactions tunneling from real activities-based manipulation mediated by audit committee independence based on sample listed non-financial firms Nigeria from 2011 to 2017. The data were obtained from Thomson Reuters DataStream and financial reports of firms. The fixed effects, random effects (GLS), and the generalized method of moments (GMM) were used for panel data regression analysis using the firm internal governance and real earnings management. The findings showed that audit committee independence mediates the relationship between firm internal governance and real earnings management. The results confirm some previous literature that the monitoring role of the affiliated family firms is crucial in mitigating the opportunistic behavior of managers in engaging in real activities manipulation and ensures the earnings quality. However, the analysis of the related party transaction revealed the negative impact on transparency that entrenched managers utilized related parties as a means of tunneling and drained the minority shareholder's interest for the benefit of majority shareholders. In this case, we observed that as family ownership increases, managers
This study focused on the impact of institutional ownership on earnings quality of listed Food/Beverages and Tobacco firms in Nigeria over the period [2005][2006][2007][2008][2009][2010][2011][2012][2013]. The study utilized documentary data obtained from the annual reports and accounts of the companies for the period of the investigation. The data was first analyzed by means of descriptive statistics and subsequently, correlation analysis was carried out using Pearson correlation technique. A panel data regression technique was employed to estimate the models since the data has both time series and cross sectional attributes. The results reveals that one of the variables used, that is institutional ownership show a significant result while firm size use as control variable fail to show a significant result. The study concludes that the shares institutional investors have in the firm is an important monitoring and control device, which help to prevent abuses and other irregularities by the managers; it has improved the earnings quality of the firms; prevent fraud; maximize shareholders' wealth and enhanced the value of the firms. The size of the firms which is the control variable has not shown any significant positive effect on earnings quality of the listed food/beverages and tobacco firms in Nigeria this could be proved by the insignificant level and correlation with the independent variable. The study therefore, recommend among others: That to ensure that institutional ownership continues to impact positively on earnings quality of listed food/beverages and tobacco firms in Nigeria. The SEC should make it mandatory for institutional investors to have stake in most of the food/beverage and Tobacco firms operating in the country in order to reduce the opportunistic behaviour of the firm's managers. Regulatory authority such as SEC should monitor the activities of institutional shareholders who are operating in the country.
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