Abstract:
Amidst escalating regulatory pressures and mounting stakeholder expectations, the complex correlation between the variety of board members and the methods of managing earnings in listed insurance firms in Nigeria emerges as a pivotal concern, casting a spotlight on the overarching issues surrounding financial transparency and governance integrity. Given the foregoing, this study investigates the impact of diverse boards on earnings management in listed insurance companies in Nigeria. To achieve these objectives longitudinal panel research design was employed, and the study utilized ten (10) listed insurance firms that had consistently published their audited annual financial reports from 2013 to 2022. Data analysis was done using panel multiple regression technique with the help of statistical tools (E view 13). The result of the study revealed that board gender diversity exerts a significant effect on earnings management of insurance enterprises in Nigeria. Conversely, the study found that board nationality diversity had insignificant effect on earnings management of insurance firms in Nigeria. The study conclusively established that board gender, as a fundamental component of board diversity, plays a pivotal role in shaping the dynamics of earnings management within insurance firms operating in Nigeria. Therefore, the study recommends that listed insurance firms in Nigeria should actively promote gender diversity on their boards by recruiting and retaining more women directors. By prioritizing gender diversity, insurance firms can bolster board effectiveness, mitigate the risks of groupthink, and foster a more equitable representation at the leadership level, aligning with best practices in corporate governance and contributing to a more sustainable business environment in the Nigerian insurance sector.
