Top-Level Executives’ Knowledge and Accrual-Based Earnings Management

Top-Level Executives’ Knowledge and Accrual-Based Earnings Management

  • Post by:
  • March 18, 2022
  • Comments off


The study empirically investigated the impact of top-level executives’ knowledge on accrual-based earnings management in 30 companies listed on the Nigerian stock exchange with a panel data set spanning the years 2010 to 2020. This study uses the Hribar and Collins (2002) model and the Kothari et al. (2005) model to calculate discretionary accruals. Consistent with the agency theory, the result reveals a significant negative relationship between the top-level executives’ level of education and prior experience with the practice of earnings management for Nigerian firms. The empirical results show that increased education level and greater prior experience limits earning manipulating activities of top-level executives. Policy implications of the findings are discussed. Thus, the study recommends that companies in Nigerian firms should hire highly educated executives and executives with substantial prior experience because they mean fewer earnings management practices

Keywords: Panel Data, Board Characteristics, Accrual-Based Earnings Management, Education

Egiyi, Modesta Amaka Full PDF