EQUITY OWNERSHIP STRUCTURE AND EARNINGS MANAGEMENT IN SOME SELECTED QUOTED MANUFACTURING COMPANIES IN NIGERIA
- Project Research
- 1-5 Chapters
- Abstract : Available
- Table of Content: Available
- Reference Style: APA
- Recommended for : Student Researchers
- NGN 3000
ABSTRACT
The objective of the study was to examine the impact of equity ownership structure and earnings management on some selected quoted manufacturing companies, taking into consideration the challenges of rewarding investors adequately which is a topical issue in the modern business Ownership structure and earnings management was evaluated in determining the rewarding process to equity owners and contribute positively to the growth of the organization. The specific objectives of the research were to examine the influence of managerial equity ownership structure on earnings management, determine the impact of foreign equity ownership on earnings management, ascertain the influence of institutional equity ownership on earnings management, investigate the effect of concentrated ownership on earnings management and to ascertain the presence of monotonicity in the relationship between equity ownership and earnings management in Nigeria. In carrying out the research work, the following hypothesis tested are: managerial equity had no significant relationship with earnings management, foreign equity ownership had no significant relationship with earnings management; Institutional equity ownership had no significant relationship on earnings management; concentrated ownership had no significant relationship with earnings management; and there was no monotonicity in the relationship between equity ownership and earnings management. The study employed a research design of objectivist perspective and positivity was used with a population of 64 forms quoted on Nigeria stock exchange through a longitudinal research design using secondary data retrieved from listed manufacturing firms quoted on the Nigerian Stock Exchange. A sample of 64 manufacturing firms which actually covered the population was used for the study with a time period between 2009-2019. The panel regression analysis technique was used in the estimation of the specified models alongside Robust Statistics to address potential outliers after a preliminary analysis such as descriptive statistics. Correlation analysis, panel co-integration analysis and variance inflation factor test were conducted. The outcome of the research revealed that managerial equity ownership (MOWN) had a negative effect on earnings management and it was statistically significant at 5%. The result thus confirmed that an increase in managerial equity ownership resulted in a decline in earnings management. Furthermore, the estimation results showed that Institutional equity ownership (IOWN) had a positive effect on earnings management and it was statistically significant at 5%. The effect of foreign ownership (FOWN) was negative and statistically significant at 5%. Also, the result indicated that foreign ownership presence could be effective in constraining the opportunistic practices of managers in the form profit repatriation at the determent of other investors. While concentrated ownership (COWN) had a negative effect on earnings management and was statistically significant at 5%, the study’s results confirms the presence of non-monotonicity and a curvilinear pattern in the behaviour of managerial ownership in relation to an increase in its percentage share, and how it affected earnings management. Therefore, the study recommended a more direct institutional monitoring by promoters and not only should foreign equity ownership be employed by companies, it should also be regulated by statutory agencies appointed by Government so as to avoid a situation where nationalistic interests were sidelined in favour of profit repatriation which was often the practice of foreign owned and dominated public interest entities (PIE’s). The study thus recommends for increase in concentrated shareholding But should also be regulated not to exceed 10% shareholding. The study further recommended that to keep the effect of managerial equity within the alignment space, ownership equity should be maintained at moderate and not higher levels.
Related Project Materials
A Speech Act Analysis of Speeches on Insurgency in Nigeria
Abstract
Nigeria is still battling with the problem of insurgency. Pictures of bloody acts of violence by insurgents are shown. Insurgenc...
THE IMPACT OF FEMALE LABOUR FORCE ON THE ECONOMIC GROWTH OF NIGERIA (1980-2010)
ABSTRACT
A country’s labour force consists of everyone of the working age, typically above the age of seventeen and below the retir...
THE EFFECT OF COMMUNICATION ON EMPLOYEE PERCEPTION OF CHANGE IN AN ORGANIZATION
ABSTRACT
This study was carried out to examine the effect of communication on employee perception of change in an organi...
COMPARISON OF THE EFFECTS OF CIMETIDINE AND DIAZEPAM ON THE PHARMACOKINETICS OF PARACETAMOL IN HEALTHY HUMAN VOLUNTEERS
ABSTRACT
The influence of Cimetidine (400 mg) and Diazepam (5 mg) on the pharmacokinetics of oral paracetamol (1000 mg) was studied and c...
Design and Development of an Android Application for Domestic Jobs Application (Job Bay)
This project report describes a mobile android based job finder and applier. There is a crisis in Nig...
THE EFFECT OF CONFLICT MANAGEMENT EFFECTIVENESS ON THE PRODUCTIVITY OF ADMINISTRATIVE EMPLOYEES AT TERTIARY INSTITUTIONS
Background to the study &...
THE FUTURE OF FORENSIC ACCOUNTING: TRENDS AND INNOVATIONS
THE FUTURE OF FORENSIC ACCOUNTING: TRENDS AND INNOVATIONS
This research explores the future trends and innovations in forensic accounting...
THE ROLE OF CYBERSECURITY IN DIGITAL TRANSFORMATION
THE ROLE OF CYBERSECURITY IN DIGITAL TRANSFORMATION
The study aims to: (1) investigate the role of cybersecurity in facilitating digital...
THE EFFECT OF POST-HARVEST HANDLING ON THE QUALITY AND MARKETABILITY OF LOCALLY HARVESTED TOMATO IN AKS CASE STUDY UYO SENATORIAL DISTRICT
Abstract
Tomato (Lycopersiconesculentum Mill.) is one of the vegetables with the highest production in the world and it...
COMMUNICATION: THE KEY IN EFFECTIVE PUBLIC RELATION
EXCERPT FROM THE STUDY
Communication and business success are inseparable. To be able to attain organizational objective...
