Imoleayo F Obigbemi

Earnings Management and Board Structure: Evidence from Nigeria

The board structure of an organization gives an overview of the standard of such organization, which also influences its public image. This study attempts to evaluate the role board structure plays in curtailing earnings management practices in Nigerian companies. This study sampled the data of 137 quoted companies in Nigeria for a period of 8 years (2003-2010). Earnings management was measured using the magnitude of the discretionary accruals as estimated by the performance matched modified Jones model. The ordinary least squares (OLS) regression technique was used to measure the research model as well as the Pearson moment correlation coefficient. The study shows that there is a significant relationship between board structure and earnings management practices in Nigeria. The study shows that there is a negative significant relationship between board size, gender, and board composition with earnings management; also, there is a positive significant relationship between board meeting and earnings management practices in Nigeria. There is a positive nonsignificant relationship between the presence of a remuneration committee and the dualization of CEO and chairman positions with earnings management practices in Nigeria. This study recommends that regulators at all levels should enforce the preparation and publication of financial reports by companies operating in Nigeria.

Accounting Numbers and Stock Prices in the Nigerian Stock Market

This research is motivated to study the extent to which accounting information summarizes stock prices in Nigerian stock market as an indicator of value relevance. Piece of accounting data is termed value relevant if it is significantly related to the dependent variable, which may be expressed by the stock price. The methods used for gauging information contents of various accounting numbers were Ordinary Least Squared (OLS), Random Effects Model (REM), and Fixed Effects Model (FEM). The findings show that there is a significant relationship between accounting information and share prices of companies listed on the Nigerian Stock Exchange. Dividends are the most widely used accounting information for investment decisions in Nigeria, followed by earnings and net book value. The study therefore recommends that the firms should improve the quality of earnings as manipulated earnings (of which dividends are sub-sets) have large effects on share prices. The paper also recommends that all companies listed on the Nigerian Stock Exchange should prepare Simplified Investor’s Summary Accounts (SISA) with emphasis on the most widely used accounting information along the required mandatory detailed financial statements to suit Nigerian peculiarities. The study’s findings and recommendations may be of use to National Standard Setters, preparers of accounting information, Nigerian Stock Exchange Regulators, investors and other emerging stock market

Financial Intelligence and the Quality of Higher Education in Africa

Improving the quality of curriculum development in private Universities in Africa from time to time is a task that is very essential to achieving effectiveness, efficiency, and relevance in the higher education system. Financial Intelligence is one of the five components of a twenty first century education, the kind of education that actually delivers the financial andwealth building results that people deserve. Unfortunately, a 21st century education is not something that is currently obtainable in the traditional school system in Africa, requiring instead that students go out and seek it on their own. This paper, using the explorative methodology, establishes that without financial intelligence, graduates from African private higher education schools will be forced to follow the road of financial disaster, ruin, and anti-excellence which most people travelled. It therefore recommends among others that financial intelligence be integrated into the curriculum of African Universities to enable students know the how of making money, work for them rather than simply working for money. Keywords : Financial Intelligence, Quality, Higher Education, Africa