Research Article


DOI :10.26650/imj.2022.93.001   IUP :10.26650/imj.2022.93.001    Full Text (PDF)

Executive Compensation, Corporate Governance and Financial Reporting Quality: Evidence from listed firms in Nigeria

Titilope Esther OloredeSegun AbogunJohnson Kolawole Olowookere

In many emerging economies with less efficient market systems like Nigeria, investors tend to rely on financial reports for decision-making. Managerial opportunistic behavior is associated with the need to achieve performance-based remuneration targets. However, corporate governance mechanisms are established to monitor managerial affairs which are believed to curb such behaviors. Hence, this study assesses the influence of executive compensation on the quality of financial reports with an interactive effect of corporate governance in Nigerian listed firms. The population of the study comprised all listed companies on the Nigerian Exchange Group (NGX) from which 74 firms were selected. Executive compensation was proxied with the chief executive officer’s total remuneration, and the corporate governance index was adopted as a measure of corporate governance. The discretionary accruals from the modified Jones model by Kothari, Leone, and Wasley (2005), and the accruals of Dechow and Dichev (2002) proxied for financial reporting quality. The estimation results showed that the interactive effect of executive compensation and corporate governance has a significant and negative influence on discretionary accruals, which indicates a positive relationship with reporting quality.

JEL Classification : G34 , M12 , M41

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APA

Olorede, T.E., Abogun, S., & Olowookere, J.K. (2022). Executive Compensation, Corporate Governance and Financial Reporting Quality: Evidence from listed firms in Nigeria. Istanbul Management Journal, 0(93), 1-19. https://doi.org/10.26650/imj.2022.93.001


AMA

Olorede T E, Abogun S, Olowookere J K. Executive Compensation, Corporate Governance and Financial Reporting Quality: Evidence from listed firms in Nigeria. Istanbul Management Journal. 2022;0(93):1-19. https://doi.org/10.26650/imj.2022.93.001


ABNT

Olorede, T.E.; Abogun, S.; Olowookere, J.K. Executive Compensation, Corporate Governance and Financial Reporting Quality: Evidence from listed firms in Nigeria. Istanbul Management Journal, [Publisher Location], v. 0, n. 93, p. 1-19, 2022.


Chicago: Author-Date Style

Olorede, Titilope Esther, and Segun Abogun and Johnson Kolawole Olowookere. 2022. “Executive Compensation, Corporate Governance and Financial Reporting Quality: Evidence from listed firms in Nigeria.” Istanbul Management Journal 0, no. 93: 1-19. https://doi.org/10.26650/imj.2022.93.001


Chicago: Humanities Style

Olorede, Titilope Esther, and Segun Abogun and Johnson Kolawole Olowookere. Executive Compensation, Corporate Governance and Financial Reporting Quality: Evidence from listed firms in Nigeria.” Istanbul Management Journal 0, no. 93 (Jul. 2024): 1-19. https://doi.org/10.26650/imj.2022.93.001


Harvard: Australian Style

Olorede, TE & Abogun, S & Olowookere, JK 2022, 'Executive Compensation, Corporate Governance and Financial Reporting Quality: Evidence from listed firms in Nigeria', Istanbul Management Journal, vol. 0, no. 93, pp. 1-19, viewed 21 Jul. 2024, https://doi.org/10.26650/imj.2022.93.001


Harvard: Author-Date Style

Olorede, T.E. and Abogun, S. and Olowookere, J.K. (2022) ‘Executive Compensation, Corporate Governance and Financial Reporting Quality: Evidence from listed firms in Nigeria’, Istanbul Management Journal, 0(93), pp. 1-19. https://doi.org/10.26650/imj.2022.93.001 (21 Jul. 2024).


MLA

Olorede, Titilope Esther, and Segun Abogun and Johnson Kolawole Olowookere. Executive Compensation, Corporate Governance and Financial Reporting Quality: Evidence from listed firms in Nigeria.” Istanbul Management Journal, vol. 0, no. 93, 2022, pp. 1-19. [Database Container], https://doi.org/10.26650/imj.2022.93.001


Vancouver

Olorede TE, Abogun S, Olowookere JK. Executive Compensation, Corporate Governance and Financial Reporting Quality: Evidence from listed firms in Nigeria. Istanbul Management Journal [Internet]. 21 Jul. 2024 [cited 21 Jul. 2024];0(93):1-19. Available from: https://doi.org/10.26650/imj.2022.93.001 doi: 10.26650/imj.2022.93.001


ISNAD

Olorede, TitilopeEsther - Abogun, Segun - Olowookere, JohnsonKolawole. Executive Compensation, Corporate Governance and Financial Reporting Quality: Evidence from listed firms in Nigeria”. Istanbul Management Journal 0/93 (Jul. 2024): 1-19. https://doi.org/10.26650/imj.2022.93.001



TIMELINE


Submitted09.06.2022
Accepted31.08.2022
Published Online30.12.2022

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