CORPORATE GOVERNANCE, QUALITY OF EARNINGS AND FUTURE STOCK RETURNS: NIGERIA EXPEREINCE

  • Akrawah, Onutomaha Dennis; Ohiomegwe Isuku; ESAN, Benson Aisagbonbuomwan, IDUOZEE, Imade

Abstract

The purpose of this study examines the quality of earnings, corporate governance and future stock returns. The objective of the study is to examine the effect of earnings quality, board independence and board independence. The study employed a longitudinal research design by sampling twenty-five (25) companies from the non-financial quoted companies in the Nigerian Stock Exchange for the period of 2015 to 2020. The study conducts descriptive Statistic, Pearson correlation matrix, variance inflation factor and multivariate regressions technique for the empirical analysis. The empirical results show that earnings quality has a significant positive effect on stock returns and board independence has an insignificant negative effect on stock returns while board size has an insignificant positive effect on stock returns. The study recommends that earnings quality should be given priority by management because it positively enhances future stock returns and it is therefore suggested that further empirical work should be conducted on this area by incorporating other possible variable that would significantly explained future stock returns. Keywords: Board Independence, Board Size, Earnings Quality and Stock Returns.
How to Cite
Akrawah, Onutomaha Dennis; Ohiomegwe Isuku; ESAN, Benson Aisagbonbuomwan, IDUOZEE, Imade. (1). CORPORATE GOVERNANCE, QUALITY OF EARNINGS AND FUTURE STOCK RETURNS: NIGERIA EXPEREINCE. ACCENT JOURNAL OF ECONOMICS ECOLOGY & ENGINEERING ISSN: 2456-1037 INTERNATIONAL JOURNAL IF:7.98, ELJIF: 6.194(10/2018), Peer Reviewed and Refereed Journal, UGC APPROVED NO. 48767, 6(12), 34-42. Retrieved from https://ajeee.co.in/index.php/ajeee/article/view/2464