Corporate Governance and Accounting Conservatism in Nigerian Foods and Beverages Firms
Oyedokun G. Emmanuel and Saad Salisu
ABSTRACT
This study examined the effects of corporate governance on accounting conservatism in Nigerian foods and beverages sector. The study adopted ex-post facto research design using panel data for the period 2012- 2016. The study population is 15 foods and beverages firms in the Nigerian Stock Exchange and 8 firms were selected as a sample after a filtering process. Secondary data were collected from financial statements and regression analysis was used to analyze the hypotheses. The study found that board independence has significant positive effects; board size has significant negative effects while audit committee independence has a positive but not significant effect on accounting conservatism of Nigerian foods and beverages sector. The study concludes that board independence and board size are factors that influence accounting conservatism while audit committee independence does not influence accounting conservatism of Nigerian foods and beverages sector. The study recommended that food and beverages firms in Nigeria should compose more of non-executive directors on their board as this can generate the needed assurance for better financial reporting as indicated by the result of the study. Also, firms should have a small board size so as to enhance conservatism reporting while firms should provide higher non-executive directors on their audit committee so as to improve the reporting quality of their reports.
