NEW INSIGHTS INTO BOARD STRUCTURE AND INCOME SMOOTHING HYPOTHESIS
Domain:
socioeconomicRecord type:
paper
Creator:
YusOni
Publisher:
Host:
This study investigates the tie between board structure and income smoothing in 21 banks in Nigeria for 10 years (2013-2022). Corporate board structure is represented by board size, board independence and the proportion of foreign directors. In contrast to prior literature, income smoothing is defined as loan loss provision rather than earnings management. Further, the analysis examines the correlation between board structure and income smoothing. Individual board features are found to influence income smoothing behaviour of banks in Nigeria across the period covered. Overall, results provide evidence that board of directors can influence income smoothing behaviour of publicly traded banks in Nigeria. Consequently, these findings are important to regulators, shareholders, lenders, and other stakeholders. Furthermore, the results extend the understanding of the role of board of directors in reducing corporate income smoothing and building quality and sustainable earnings for banks in Nigeria, where different systems may bring opportunistic income smoothing behaviour. Note that the findings are limited to banks in the context of emerging economies.
Similar
New insights into aspectual morphology in BilinGenomic insights into Plasmodium vivax population structure and diversity in central AfricaEndocliticization and the Lexical Integrity Hypothesis: Insights from DegemaThe Effect of Income and Financial Integration on Consumption Smoothing in Africa. Does Income Asymmetry Matter?New insights into the epidemiology of malaria relevant for disease control.Corporate governance, foreign direct investment, and bank income smoothing in African countries