Abstract:
The issuance and application of corporate governance code by capital market authorities are to ensure that board of directors and managers of companies discharge their responsibilities with utmost sincerity. Studies have reported confounding empirical submission on the impact of Outside directorship and ownership concentration on the quality of reported earnings. This current study investigated the effect of outside directorship and ownership concentration on the earnings quality of listed non-financial companies in Nigeria. To achieve these objectives, a correlational panel research design was employed, utilizing data from seventy (70) non-financial firms listed on the Nigerian Exchange Group between 2009 and 2023. The study analyzed the data using panel regression techniques with the aid of the E-Vietu 12 statistical tool. The results revealed that outside directorship has a negative and insignificant effect on discretionary accrual, while ownership concentration exhibited a negative but significant effect. The study concludes that while outside directorship does not significantly influence earnings quality, ownership concentration negatively impacts financial reporting integrity, suggesting that dominant shareholders may compromise transparency. Thus, it is recommends that non-financial firms in Nigeria should carefully manage ownership concentration to enhance earnings quality and ensure transparent financial reporting practices.
