Impact of Board Characteristics on Earnings Management in Listed ICT Companies in Nigeria

Abstract

This study examines the influence of board characteristics including board independence, board size, and board gender diversity on earnings management among Information and Communication Technology (ICT) companies listed on the Nigerian Exchange Group. Motivated by increasing concerns over the quality of financial reporting and governance effectiveness in emerging markets, the research employs an ex post facto design using panel data from seven ICT firms covering 2014–2024. Earnings management was estimated using the Modified Jones Model, while ordinary least squares (OLS) regression was used to analyze the relationship between the independent variables and earnings management. The results show that board size and board independence significantly and positively influence earnings management, whereas gender diversity exhibits a negative but insignificant effect. The findings highlight the need for strengthened governance mechanisms within Nigeria’s ICT sector to enhance transparency and financial reporting integrity.