Corporate Governance Mechanism and Accounting Conservation of Listed Manufacturing Companies in Nigeria

Abstract

<p>This study assessed the relationship between Corporate Governance Mechanism (CGM) and Accounting conservation of selected listed companies in Nigeria. The study adopted an expo-facto research design. The population of the study was 57 companies listed on the Nigeria Exchange group. The sample was determined using Taro Yamane formula which gave a sample size of 25 companies. The study covered the period 2007 to 2021 financial year. The study used secondary data. The data were analyzed using descriptive statistics and linear regression analysis. The result of the analysis shows that the effect of Board Size on the accounting conservatism of listed manufacturing firms in Nigeria is statistically significant. Board independence has a significant influence on the accounting conservatism of listed manufacturing firms in Nigeria. It was recommended that companies should avoid small board sizes and target maintaining the optimal number of members on their boards consistent with governance codes of practice. Evidence from this study shows that large board size has significant positive trade-off on accounting quality and conservatism.</p><p><strong>JEL:</strong> M14, M40, M41, M42, M49</p><p> </p><p><strong> Article visualizations:</strong></p><p><img src="/-counters-/soc/0017/a.php" alt="Hit counter" /></p>