Gusau Journal of Accounting and Finance (GUJAF) Vol. 5 Issue 1, April, 2024 ISSN: 2756-665X A Publication of Department of Accounting and Finance, Faculty of Management and Social Sciences, Federal University Gusau, Zamfara State -Nigeria Gusau Journal of Accounting and Finance, Vol. 5, Issue 1, April, 2024 ii © Department of Accounting and Finance Vol. 5 Issue 1 April, 2024 ISSN: 2756-665X A Publication of Department of Accounting and Finance, Faculty of Management and Social Sciences, Federal University Gusau, Zamfara State -Nigeria All Rights reserved Except for academic purposes no part or whole of this publication is allowed to be reproduced, stored in a retrieval system or transmitted in any form or by any means be it mechanical, electrical, photocopying, recording or otherwise, without prior permission of the Copyright owner. Published and Printed by Ahmadu Bello University Press Limited, Zaria, Kaduna State, Nigeria. Tel: 08065949711 e-mail: abupress@abu.edu.ng info@abupress.com.ng abupress2013@gmail.com Website: www.abupress.com.ng mailto:abupress2013@gmail.com http://www.abupress.com.ng/ Gusau Journal of Accounting and Finance, Vol. 5, Issue 1, April, 2024 iii EDITORIAL BOARD Editor-in-Chief: Prof. Shehu Usman Hassan Department of Accounting, Federal University of Kashere, Gombe State. Associate Editor: Dr. Muhammad Mustapha Bagudo Department of Accounting, Ahmadu Bello University Zaria, Kaduna State. Managing Editor: Umar Farouk Abdulkarim Department of Accounting and Finance, Federal University Gusau, Zamfara State. Editorial Board Prof.Ahmad Modu Kumshe Department of Accounting, University of Maiduguri, Borno State. Prof Ugochukwu C. Nzewi Department of Accounting, Paul University Awka, Anambra State. Prof Kabir Tahir Hamid Department of Accounting, Bayero University, Kano, Kano State. Prof. Ekoja B. Ekoja Department of Accounting, University of Jos. Prof. Clifford Ofurum Department of Accounting, University of PortHarcourt, Rivers State. Prof. Ahmad Bello Dogarawa Department of Accounting, Ahmadu Bello University Zaria. Prof. Yusuf. B. Rahman Department of Accounting, Lagos State University, Lagos State. Gusau Journal of Accounting and Finance, Vol. 5, Issue 1, April, 2024 iv Prof. Suleiman A. S. Aruwa Department of Accounting, Nasarawa State University, Keffi, Nasarawa State. Prof. Muhammad Junaidu Kurawa Department of Accounting, Bayero University Kano, Kano State. Prof. Muhammad Habibu Sabari Department of Accounting, Ahmadu Bello University, Zaria. Prof. Okpanachi Joshua Department of Accounting and Management, Nigerian Defence Academy, Kaduna. Prof. Hassan Ibrahim Department of Accounting, IBB University, Lapai, Niger State. Prof. Ifeoma Mary Okwo Department of Accounting, Enugu State University of Science and Technology, Enugu State. Prof. Aminu Isah Department of Accounting, Bayero University, Kano, Kano State. Prof. Ahmadu Bello Department of Accounting, Ahmadu Bello University, Zaria. Prof. Musa Yelwa Abubakar Department of Accounting, Usmanu Danfodiyo University, Sokoto State. Prof. Salisu Abubakar Department of Accounting, Ahmadu Bello University Zaria, Kaduna State. Prof. Sunusi Sa'ad Ahmad Department of Accounting, Federal University Dutse, Jigawa State. Prof. Isaq Alhaji Samaila Department of Accounting, Bayero University, Kano State. Gusau Journal of Accounting and Finance, Vol. 5, Issue 1, April, 2024 v Dr. Fatima Alfa Department of Accounting, University of Maiduguri, Borno State. Dr. Nasiru A. Ka’oje Department of Accounting, Usmanu Danfodiyo University Sokoto State. Dr. Aminu Abdullahi Department of Accounting, Usmanu Danfodiyo University Sokoto, State. Dr. OnipeAdebenege Yahaya Department of Accounting, Nigerian Defence Academy, Kaduna State. Dr. Saidu Adamu Department of Accounting, Federal University of Kashere, Gombe State. Dr. Nasiru Yunusa Department of Accounting, Ahmadu Bello University Zaria. Dr. Aisha Nuhu Muhammad Department of Accounting, Ahmadu Bello University Zaria. Dr. Lawal Muhammad Department of Accounting, Ahmadu Bello University Zaria. Dr. Farouk Adeza School of Business and Entrepreneurship, American University of Nigeria, Yola. Dr. Bashir Umar Farouk Department of Economics, Federal University Gusau, Zamfara State. Dr Emmanuel Omokhuale Department of Mathematics, Federal University Gusau, Zamfara. State Gusau Journal of Accounting and Finance, Vol. 5, Issue 1, April, 2024 vi ADVISORY BOARD MEMBERS Prof. Kabiru Isah Dandago, Bayero University Kano,Kano State. Prof A M Bashir, Usmanu Danfodiyo University Sokoto, Sokoto State. Prof. Muhammad Tanko, Kaduna State University, Kaduna. Prof. Bayero A M Sabir, Usmanu Danfodiyo University Sokoto, Sokoto State. Prof. Aliyu Sulaiman Kantudu, Bayero University Kano, Kano State. Editorial Secretary Yazid Kabir Ibrahim Department of Accounting and Finance, Federal University Gusau, Zamfara State. Gusau Journal of Accounting and Finance, Vol. 5, Issue 1, April, 2024 vii CALL FOR PAPERS The editorial board of Gusau Journal of Accounting and Finance (GUJAF) is hereby inviting authors to submit their unpublished manuscript for publication. The journal is published in two issues of April and October annually. GUJAF is a double-blind peer reviewed journal published by the Department of Accounting and Finance, Faculty of Management and Social Sciences, Federal University Gusau, Zamfara State Nigeria The Journal accepts papers in all areas of Accounting and Finance for publication which include: Accounting Standards, Accounting Information System, Financial Reporting, Earnings Management, , Auditing and Investigation, Auditing and Standards, Public Sector Accounting and Auditing, Taxation and Revenue Administration, Corporate Governance Issues, Corporate Social Responsibility, Sustainability and Environmental Reporting Issue, Information and Communication Technology Issues, Bankruptcy Prediction, Corporate Finance, Personal Finance, Merger and Acquisitions, Capital Structure, Working Capital Management, Enterprises Risk Management, Entrepreneurship, International Business Accounting and Finance, Banking Crises, Bank’s Profitability, Risk and Insurance Issue, Islamic Finance, Conventional and Islamic Banks and so forth. 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Finally, manuscript should be send to our email address elfarouk105@gmail.com and a copy to our website on journals.gujaf.com.ng http://www.gujaf.com.ng/ Gusau Journal of Accounting and Finance, Vol. 5, Issue 1, April, 2024 viii PUBLICATION PROCEDURE After receiving a manuscript that is within the similarity index threshold, a confirmation email will be send together with a request to pay a review proceeding fee. At this point, the editorial board will take a decision on accepting, rejecting or making a resubmission of the manuscript based on the outcome of the double-blind peer review. Those authors whose manuscript were accepted for publication will be asked to pay a publication fee, after effecting all suggested corrections and changes made on the manuscript. All corrected papers returned within the specified time frame will be published in that issue. PAYMENT DETAILS Bank: FCMB Account Number: 7278465011 Account Name: Gusau Journal of Accounting and Finance FOR INQUIRY The Head, Department of Accounting and Finance, Federal University Gusau, Zamfara State. elfarouk105@gmail.com +2348069393824 FOR MORE INFORMATION, CONTACT The Editor-in-Chief on +2348067766435 The Associate Editor on +2348036057525 OR visit our website on www.gujaf.com.ng or journals.gujaf.com.ng http://www.gujaf.com.ng/ http://www.gujaf.com.ng/ Gusau Journal of Accounting and Finance, Vol. 5, Issue 1, April, 2024 ix CONTENTS Impact of Audit Quality on Earnings Management of Consumer Goods Firms in Nigeria Sirajo Bappah, Auwal Saad, Shehu Usman Hassan PhD, Saidu Adamu PhD Board Characteristics and Corporate Social Responsibility of Listed Oil and Gas Companies in Nigerian. Aliyu Abubakar, Yunusa Nasiru PhD, Dr. Umar Abubakar Board Characteristics and Audit Quality of Listed Consumer Goods Firms in Nigeria Aliyu Shehu Usman, Danson Andrew, Abdullahi Bala Ado PhD, CEO Characteristics and Financial Reporting Quality in Listed Consumer Goods Companies in Nigeria Okika Nkiru Philomena, Oyeneye Temitope Esther, Adedeji Daniel Gbadebo Liquidity Risk and Financial Performance of Listed Deposit Money Banks in Nigeria Bashir Abdulrauf Mohammed, Aliyu Ahmed Abdullah PhD, Prof. Salisu Mamman Ibrahim Yusuf PhD, Suleiman Salami PhD Information Asymmetry and Cost of Capital: A Review of Empirical Evidence Sunusi Ridwan Ayagi PhD, ACA, Rashida Lawal, PhD Ownership Structure and Female Inclusion of Listed Financial Firms in Nigeria Gbemigun Catherine Omoleye , Alade Muyiwa Ezekiel Phd CSR Initiatives and Sustainability Resilience in Nigeria's Oil and Gas Industry: A PLS-SEM Approach from Local Communities' Perspective Tajudeen Alaburo, Rofiat Bolanle, Abdussalam, Abdulrahman Abubakar, Tajudeen, Akeem Olamilekan Babatunde Capital Structure and the Financial Performance of Listed Information and Communications Technology Firms in Nigeria Nasiru Adamu Kanoma, Nurudeen Usman Miko, Augustine Ayuba, Idris Mohammed, Mark G, Tagwai Gusau Journal of Accounting and Finance, Vol. 5, Issue 1, April, 2024 x Profitability and Turnover Appraisal of Listed Deposit Money Banks in Nigeria Odogu, Terry Keme Zuode (PhD) and Koroye, Amapamo Stephen Board Attributes and Timeliness of Financial Reports of Listed Non-Financial Firms in Nigeria Rashida Lawal PhD and Prof. Kabir Hamid Tahir Board Independence and Financial Reporting Quality of Listed Oil and Gas Companies in Nigeria: Moderated by Firm Size Adamu Lawal Bello, Prof. J. Okpanachi, Prof. T. Nyor and Lateef Olumude Mustapha (Ph.D) Does ESG Investment Impact the Financial Sustainability of Nigerian Energy Companies: A Panel Regression Approach? Tajudeen Alaburo, Abdulsalam and Adedeji Daniel Gbadebo Board Attributes and Sustainability Reporting of Listed Firms in Nigeria Idris Mohammed, Bejamin K, Gugong PhD, Rofiat Adedokun, Abdulrahman A, Olorunloga and Mark, G, Tagwai Mediating Effect of Internal Auditors’ Ethical Conduct on The Relationship Between Usage of Information Technology, Management Support for Internal Audit Department, and Internal Audit Effectiveness: A Conceptual Framework Nura Badamasi, Adura Binti Ahmad Gusau Journal of Accounting and Finance, Vol. 5, Issue 1, April, 2024 68 CEO CHARACTERISTICS AND FINANCIAL REPORTING QUALITY IN LISTED CONSUMER GOODS COMPANIES IN NIGERIA Okika Nkiru Philomena Department of Accounting and Finance Anchor University, Ayobo Ipaja Lagos philuxnkiru@gmail.com Oyeneye Temitope Esther Department of Accounting and Finance Anchor University, Ayobo Ipaja Lagos toyeneye@aul.edu.ng Adedeji Daniel Gbadebo Department of Accounting Science Walter Sisulu University, Mthatha, South Africa agbadebo@wsu.ac.za Abstract This study investigates the connection between the CEO characteristics and the quality of financial reporting in Nigerian consumer goods companies. Data used was from the annual report of 10 consumer goods firms listed in the Nigeria Stock Exchange from 2013 to 2022. Using Ordinary least square regression, the research revealed that CEO gender and tenure have a positive and substantial effect on financial reporting quality. CEO financial expertise was found to be insignificant. The study concluded that long-tenure CEOs and female CEOs contribute to better financial reporting quality in the consumer goods industry. The study recommends among others that the board of directors of consumer goods firms in Nigeria should encourage gender diversity at the executive level through policies and initiatives that promote equal opportunities for women. Keywords: Financial Reporting Quality, CEO Characteristics, CEO tenure, CEO Gender 1. Introduction Globally, emphasis has been placed on the quality of information in financial reports because of its importance to shareholders, creditors, regulators, stakeholders, and other users. The objective of the International Accounting Standards Board's (IASB) financial report is to improve users' ability to make mailto:philuxnkiru@gmail.com mailto:toyeneye@aul.edu.ng Gusau Journal of Accounting and Finance, Vol. 5, Issue 1, April, 2024 69 decisions by preparing and presenting pertinent data (IASB, 2018). Since market participants, including investors, lenders, and regulators, rely on financial reporting information to make decisions, financial reporting quality is therefore essential to preserving the efficiency of the financial markets (Yeh, Chen & Wu, 2014). Economic decisions are made using high-quality information, yet the concept of "quality" is elusive and difficult to define (Barth, Landsman & Lang, 2008). The majority of empirical research has used earnings management metrics to define the quality of financial reporting. One way to interpret earnings management is as the existence of untruthfulness in a financial report. Earnings management is defined as when managers employ their judgment to alter the financial report to appear different from reality. Accounting scholars and practitioners have been interested in the topics of earnings manipulation and accounting information transparency for a number of years (Amara et al., 2013; Gounopoulos & Pham, 2018). The reputation of the profession has been called into doubt by financial scandals that resulted in the failure of corporations that were deemed too big to fail, such as Enron, WorldCom, and Parmalat, to mention a few, and their numerous external auditors. Included as well is the German Wirecard case from 2020, which is regarded as one of the biggest financial scandals in Europe to date and is linked to a corporate governance problem (Giovannetti, 2020). There are allegations of fraudulent accounting and market manipulation around the Wirecard scandal.A series of studies have discussed as antecedent to financial reporting which includes corporate governance dimensions such as Chief Executive Officer (CEO) characteristics, board of directors, audit committee, and others (Cimini, 2015; Eng et al., 2019). Executives, however, are the only ones in charge of creating accurate and fair financial reports and play a major role in the reporting process. CEOs are a company's senior executives and are in charge of setting the company's strategic direction and guaranteeing its success. There is ongoing criticism of the CEO and other top management team for being responsible for the earnings manipulation which has influenced investor's decisions. Agency theory states that managers are driven to protect their own interests over those of shareholders (Jensen, 1976). As such, the relationship between CEO traits and earnings management is a rich field that merits more research. According to Pham, Chung, Roca & Bao(2017) managers are motivated to alter accounting data to deceive those who rely on them for information regarding the company's financial performance or to further their own interests at the expense of shareholders. According to the upper echelons hypothesis, the experiences and Gusau Journal of Accounting and Finance, Vol. 5, Issue 1, April, 2024 70 background of the CEO might have an impact on the decisions the CEO makes and the results the organization gets afterward (Bouaziz, Salhi & Jarboui, 2020). CEOs are required by the Nigerian Securities and Exchange Commission to conduct themselves with the utmost integrity and to compile financial statements that accurately and fairly depict the reporting firm. Since then, shareholders, regulators, and investors have been holding CEOs responsible for shocking and deceptive earnings statements. The majority of significant financial scandals and corporate governance violations, such as those involving Cadbury in 2006, Lever Brothers in 1997, Skye Bank and Arik airline in 2016, and Oando in 2017, are attributed to Nigerian CEOs (Okaro et al., 2013). Although numerous studies have been conducted on CEO and financial reporting quality for instance Bouaziz et al., (2020); Liu et al., (2018); and Alqatamin et al., (2017). The researchers have examined a wide range of distinct individual traits connected to different facets of the accuracy of financial reporting, such as financial expertise. (Baatwah et al., 2015 and Gounopoulos & Pham, 2018), CEO tenure; Ali & Zhang, 2015), and CEO gender (Arun et al., 2015; Na & Hong, 2017 and Belot & Serve, 2018). In Nigeria, even though CEOs have been involved in corporate financial scandals, few studies have been undertaken in Nigeria on the impact of CEO qualities and financial reporting quality (e.g, Yahaya, 2022; Ashafoke et al., 2021). There are limited studies in Consumer goods firms with the current not extending to 2019 with focus on 6 firms (e.g, Adebenege,, 2022). The study aims to examine the relationship between CEO characteristics such as CEO Gender, tenure, and CEO financial expertise on financial reporting quality in consumer goods firms in Nigeria. The paper is organized as follows: section 1 introduction, Section 2 provides the theoretical background and the study's hypothesis. This study explicitly examines the literature that is pertinent to Financial Reporting Quality, CEO Characteristics and Earnings Management. The methodology is presented in Section 3. Section 4 of this study discusses the empirical results. The conclusion is presented in the final section, followed by a suggestion for further research and recommendations. 2. Literature Review Financial Reporting Quality Quality is considered to be an essential part of accounting expertise (Siegel, 1982). Nonetheless, firms do not commonly recognize or readily quantify accounting Gusau Journal of Accounting and Finance, Vol. 5, Issue 1, April, 2024 71 quality. According to Imhoff (1992), bias, quantification errors, or both could contribute to noise in accounting quality. Therefore, it may be claimed that financial reports, the main focus of this work, are the source of accounting signals. Financial reporting is of high quality, according to Gary and Poh-Sun (2013), when the information in the reports is helpful and timely, relevant, and transparent. Divergent opinions have been voiced regarding the most effective way to assess the quality of financial reporting (Dechow et al., 2010). Likewise, there is a lack of agreement on what qualifies as high-quality financial reporting. It is assumed that managers use discretionary accruals in situations where they have some degree of control over how much money is made (Healy & Wahlen, 1999). Upper Echelons Theory An important tool for analyzing CEO characteristics and the caliber of financial reporting is the upper echelon theory. As per the upper echelon’s theory, managers' decision-making can be influenced by various factors such as their managerial personalities, experiences, gender, age, socioeconomic status, formal education, and functional track (Hambrick & Mason, 1984). These factors can partly shape managers' perception of the situations and issues they encounter, which can ultimately affect their decision-making (Hambrick, 2007; Hambrick & Mason, 1984). A company's top executives, who are its most influential members, are the best persons to ask for advice on how to make it successful. A company's chief executive officer (CEO) oversees making important business decisions, overseeing daily operations, and determining the company's strategic course. Earlier empirical studies have demonstrated the impact of various managerial characteristics on accounting decisions. According to Bouaziz et al. (2020), the upper echelons hypothesis posits that the background traits and experiences of a CEO might impact their decision-making and subsequent organizational outcomes. Hence, financial expertise CEOs and Longer CEO tenures can lead to a deep understanding of the organization's historical financial performance, reporting practices, and the specific challenges it faces. CEOs with longer tenures may be better equipped to make informed decisions about financial reporting practices (Cai & Sevilir, 2012; Kirca et al., 2012). CEO gender can influence the leadership style and values brought to the role. Female CEOs may approach financial reporting with a different perspective, placing emphasis on transparency, communication, and ethical practices (Bouaziz et al., 2020; Barua et al., 2010). Gusau Journal of Accounting and Finance, Vol. 5, Issue 1, April, 2024 72 CEO Gender and Financial Reporting Quality In the wake of the 2008 financial scandals, there has been a heightened focus on gender diversity in key corporate roles during the past ten years, as noted by Lakhal et al. (2015). Research conducted by Barua et al. (2010) indicates that, as a general trend, women tend to display a greater degree of ethical conduct compared to men. Studies observe that female CEOs often steer clear of riskier investment and financing prospects when comparing female CEOs to their male counterparts (Francis et al., 2015; Faccio et al., 2016). Aligning with upper echelon theory they found that female CEOs tend to be more cautious and risk-averse than their male counterparts. Previous research by Peni & Vahamma (2010) and Khan & Vieto (2013) indicates that organizations led by women outperform male CEOs in terms of the quality of reporting returns on assets and earnings. Peni & Vahamma (2010) offered empirical research of the association between the gender of corporate leaders and earnings management in the U.S. and discovered that higher percentage of women on boards is favorably correlated with the standard of financial reporting. Obanya & Mordi (2014); Belot & Serve, (2018), who discovered that female CEOs have unique qualities that can favorably affect the monitoring of financial reporting systems and the strategic direction of businesses, provide evidence for this. Additionally, Al-Shaer & Zaman (2016), Alqatamin, et al. (2017) and Soares et al. (2018), concurred with this outcome and propose that there is a nonlinear connection between gender diversity and earnings management. Nonetheless, Gull et al. (2018), utilizing data from French companies listed on Euronext Paris between 2001 and 2010, determined that there is a negative association between female directors and earnings management. Women-owned businesses appear to outperform their male counterparts in terms of quality of reporting earnings and returns on assets. Contrarily, in a French context, Hili and Affess (2012) Ashafoke et al. (2021) and discovered that there is no link between the gender of the CEO and earnings management. Similarly, Research by Al-Othman & Al-Zhoubi (2019) on the effects of CEO gender on profits quality in Jordan likewise came to no significant conclusions. In Jordan, Mohammad et al. (2020) investigated the impact of CEO personal traits on real earnings management (REM) practices. From 2013 to 2018, a sample of 58 firms registered on the Amman Stock Exchange was studied for six years. The study discovered that the term of CEOs had no effect on REM in Jordanian businesses. This study focused on real EM which is distinct from accrual EM. Based on empirical studies and Upper Echelon theory the studies hypothesize that: Gusau Journal of Accounting and Finance, Vol. 5, Issue 1, April, 2024 73 H1: CEO Gender has a positive and significant effect on financial reporting quality CEO Financial Expertise and Financial Reporting Quality There is mixed finding regarding CEO financial expertise and FRQ. Some studies. Baatwah et al. (2015) demonstrate a positive correlation between CEO competence and earnings management. Gajevszky, (2015). They argued that CEOs with financial expertise help in negotiations with external auditors. Over the course of their careers, CEOs have gained a deeper understanding of financial and accounting issues, which they may use to improve the financial reporting process and make informed accounting decisions. Furthermore, financial specialists CEOs understand the kind of information investors want and value accounting data when evaluating companies due to their vast knowledge and involvement with the financial sector (Custódio & Metzger, 2014). Some argued that CEOs with a background in finance are less inclined to engage in earnings manipulation compared to those lacking such experience. For example, Gounopoulos and Pham (2018) use the United States as a sample of 467 IPO firms (2003-2011) to examine the association between financial expert CEOs and earnings management surrounding initial public offerings. According to their findings, CEOs with a background in finance are less likely to oversee accruals and real earnings management. According to the findings, Oussii, and Klibi (2023), CEOs with a background in finance are less likely to manipulate earnings in order to hide losses and declines in value. Conversely, Jiang et al. (2013) looked at the impact of CEOs with experience in finance and earnings management on Chinese companies listed on the Shenzhen and Shanghai stock market and discovered that CEO financial ability did not significantly correlate, according to the study. They concluded that CEOs with stronger expert power are more likely to generate lower earnings quality. Based on empirical studies and Upper Echelon theory the studies hypothesize that: H2: CEO Financial Expertise has positive and significant effect on financial reporting quality. CEO Tenure and Financial Reporting Quality According to Salehi, et al., (2018), CEO tenure is the length of time a CEO has held the role. A long-tenured top management was also associated with team familiarity and the cohesiveness of the company's internal business. A CEO who has served Gusau Journal of Accounting and Finance, Vol. 5, Issue 1, April, 2024 74 for an extended period may possess greater expertise, enabling them to furnish the board with crucial insights regarding the company and its business environment, as suggested by Cai and Sevilir (2012). Aligning with upper echelon theory, Chen et al., (2015) looked into the effect of CEO tenure on the caliber of financial reporting in consumer products companies, their findings showed that longer CEO tenure is linked to greater financial reporting quality. Ashafoke et al. (2021) used a sample of 15 financial institution from 2008 to 2019 and discovered that long tenure CEOs improve financial reporting quality. CEO tenure and earnings manipulation are negatively correlated, as shown by Deng et al. (2018). According to Francis et al.'s (2008) research, the quality of financial reporting was favorably correlated with the CEO's tenure. Long-term CEOs are less likely than short-term CEOs to be aggressive in their financial reporting, according to Axelson & Bond (2009) & Zhang (2009). CEOs with more experience will strive to uphold their reputation, which will keep them from acting belligerently. Conversely, from 2000 to 2015, Cho et al. (2019) discovered a positive and substantial relationship between the length of CEO tenure and EM among Korean listed companies. Furthermore, CEO tenure and earnings manipulation are found to be linearly correlated by Ali & Zhang (2015), who also note that CEOs typically manipulate earnings more significantly from the beginning of their tenure until the end. Based on empirical studies and Upper Echelon theory the studies hypothesize that: H3: CEO tenure has positive and significant effect on financial reporting quality 3. Methods, Models and Data The study adopts a correlational research design to study the effect of board of director diversity on the financial reporting quality of listed non-financial firms in Nigeria. The ex-post facto allows the researcher to use an existing information. The population for this study consists of all twenty-one (21) listed consumer goods firms in Nigerian as at December, 2022. The research spans a ten-year period, from 2013 to 2023. A single filter criterion was used to alter the population. Firms that were not listed as of December 31, 2013 until December 2022 were removed from the study. This suggest that the firm must fully operate for the ten years and their data is readily available Firms with insufficient information on CEO characteristics were also removed. As a result, the study used a sample of ten (10) listed consumer goods firms existing in the floor of the exchange as at 31st December, 2023 which account for 48% of the population. Secondary data was gathered from the firm's annual report and the Nigeria Exchange Group (NXG) website. As an analytical tool, descriptive statistics and regression analysis were Gusau Journal of Accounting and Finance, Vol. 5, Issue 1, April, 2024 75 used in the study. The assumptions of the classical linear regression model (CLMR) were validated by diagnostic tests. The information gathered was summarized using descriptive statistics and evaluated using STATA's multiple regression analysis. The dependent variable for this study is the financial reporting quality (FRQ) measured by absolute values of discretionary accruals multiplied by -1 (Dis Accr). The discretionary accrual is measured by the absolute residual from the modified Jones Model by Dechow et al. (1995). The paper estimates discretionary accruals, a stand-in for earnings management, using a cross-sectional modified Jones model. The Dechow, et al. (1995) modified Jones model, which was altered to distinguish the non-discretionary from the discretionary element of total accruals, is as follows: TACi,t/Ai,t-1 = α0(1/TAi,t-1)+α1[(ΔREVi,t - ΔRECi,t)/Ai,t-1]+α2(PPEi,t/Ai,t-1) +εi,t…eqn (iv) Where; TAi,t = Total accruals of firm i in year t (Total Net Income-Cash flow from operations) Ai,t-1 = Total assets at the beginning of the period of firm i ΔREVi,t = Change in sales between year t and year t-1 of firm i ΔRECi,t = Change in receivable between year t and year t-1 of firm i PPEi,t = Gross value of fixed assets in year t of firm i α0, α1, α2, = are estimated parameters εi,t = the residual of firm i in year t The financial reporting quality is discretionary accruals multiplied by -1 (DisAccr). On the other hand the independent and control variables are measured as follows: CEO gender (CEOGN): calculates the CEO's gender as a dummy variable, taking 1 for a female CEO and 0 for a male CEO. CEO Financial expertise (CEOFX): this is a dummy variable that takes 1 in the event that the CEO has a professional degree or other qualification in accounting or finance, and 0 in the other case. CEO tenure (CEOTE): calculates the length of time the CEO has held the post. Firm size (SIZE): measured by the natural logarithm of total assets. Profitability (ROA): measured by the percentage of earnings after tax to total assets in year Firm age (FAG): number of years they are listed in the Nigeria exchange group. Gusau Journal of Accounting and Finance, Vol. 5, Issue 1, April, 2024 76 The research hypotheses model is presented and specified above as follows: FRQit = a+ 𝛽1CEOGNit+ 𝛽2CEOFXit+ 𝛽3CEOTEit+ 𝛽4FSZit+𝛽5FAGit +𝛽5PRFit +𝜖it 4. Results and Discussion Table 1: Descriptive Statistics of the Variables Variables No of observation MEAN STD DEV MIN MAX FRQ 100 0.086 .073 0.001 .362 CEOG 100 0.04 0.197 0 1 CEOFX 100 0.18 .386 0 1 CEOTE 100 3.77 2.82 1 17 FSZ 100 19.02 2.31 16.11 25.60 FAG 100 41.1 2.31 5 58 PRF 100 6.2 7.0 -9.2 26.4 Source: Stata Output, 2023 Table 1 shows an average value of FRQ measured by the absolute value of discretionary accrual (DACC) to be 0.086 with standard deviation of 0.073. The standard deviation suggested that there is a low dispersion among the sampled consumer goods firms. Table 4.1 also revealed that the mean value of CEO financial expertise (CEOFE) measured with a dichotomous variable is .188 with a standard deviation is .39. The mean value indicated on average 18.8% of the sampled firm CEO are financial expertise. The mean value regarding CEOG indicated that on average 4% of the sampled firms CEO are female. By implication, it suggests that most consumer goods firm rarely point Female CEOs. This clearly shows that male gender dominates the position of CEO in consumer goods industries in Nigeria. Table 1 also showed that CEO tenure (CEOTE) has average value of approximately 4years with the standard deviation showing that the number of years they spend in CEO position are similar in nature across the listed consumer goods firms in Nigeria during the period of the study. On the control variable, the table reveals that the firm size (FSIZ) has an average value of approximately 7.277. Also, shows firm age (FAG) has an average value of 41 year and finally that profitability (PRF) has a mean value of 6.2%, which implies that the sampled firms on average are efficient in making profit from a given asset during the period of the study. Gusau Journal of Accounting and Finance, Vol. 5, Issue 1, April, 2024 77 Correlation Matrix Table 2: Correlation Analysis VARIABLES (1) (2) (3) (4) (5) (6) (7) FRQ 1.000 CEOG 0.084 1.000 CEOFX -0.086 -0.434 1.000 CEOTE -0.186 0.097 0.100 1.000 FSZ 0.186 0.051 -0.072 0.086 1.000 FAG 0.061 0.056 -0.005 0.087 0.081 1.000 PRF 0.005 0.072 -0.399 -0.064 0.141 0.002 1.000 Source: Stata Output, 2023 The correlation matrices, as shown in Table 2, demonstrated the correlation coefficients that were consistently present between the independent and dependent variables. In order to demonstrate that there is no issue with multicollinearity among the variables, Gujirati (2004) states that the correlation between independent variables should not be greater than +-0.8. With a correlation of -0.434 between the CEO gender variable and financial knowledge, as indicated in Table 2, there is no issue with multicollinearity between the independent variables included in this research model because it stays below 0.8. Table 3: Multicollinearity test Variable VIF 1/VIF CEOG 1.36 0.733 CEOFX 1.65 0.606 CEOTE 1.04 0.964 FSZ 1.05 0.948 FAG 1.02 0.979 PRF 1.36 0.733 MEAN VIF 1.25 Source: Stata Output, 2023 The Variance Inflation Factor (VIF) provide an additional layer of detail to this. Table 3 showed that, in relation to our whole collection of independent variables, the VIF is significantly smaller than Greene’s (2008) 10-cutoff point. According to the results, 1.65 is the highest VIF value. The analysis is unlikely to encounter any problems due to the multicollinearity. Gusau Journal of Accounting and Finance, Vol. 5, Issue 1, April, 2024 78 Table 4: Other diagnostic Tests Test Chi2 P-value Normality test (Jacque bera) 1.06 0.589 Breusch- Pagan or cook – Weisberg to test 0.01 0.906 Wooldridge test for autocorrelation in panel data 0.126 0.731 Source: Stata output, 2023 The error terms in the OLS regression model are traditionally assumed to be normally distributed. The Jacque Bera test was used to determine the residual's normality at the 5% significance level. A substantial p-value of 0.589, or greater than 5% level of significance, is revealed by the residual. This implies a normal distribution of the residual. To check for homoscedasticity assumption, a heteroscedasticity test was performed using the Breusch-Pagan or Cook-Weisberg methods. Table 5's result indicates that the prob>chi2 is 0.906 and the chi2 is 0.01 which is greater than the 5% level of significance. This demonstrates that heteroskedasticity is absent. The Wooldridge test was also used in the study to check for autocorrelation in panel data. With a chi square of 0.126 and a P-value of 0.731—beyond the 5% level of significance— Table 5 indicates that auto correlation is not present in the residual. Table 5: Panel Analysis Test Chi2 P-Value Hausman Specification Test 7.65 0.265 Langragier Muilplier test 0.000 1.000 Source: Stata Output, 2023 To determine whether an effect is random or fixed, the fixed and random effect models were run before the Hausman specification test was performed. The outcome demonstrates that the chi2 is 7.65 at the 5% level of significance and that the prob>chi2 is 0.265, both of which are greater than the significance threshold. An insignificant p-value indicates that the Random effect model is preferred by the Hausman test. In order to determine whether there is a panel effect—that is, to select between the random effect result and pooled OLS regression—the study also conducted the Gusau Journal of Accounting and Finance, Vol. 5, Issue 1, April, 2024 79 Breusch and Pagan Lagrangian multiplier test for random effects. The outcome showed a chi square of 0.00 and Prob > chibar2 is 1.000, which suggests that the panel effect is not present. Therefore, the OLS Regression Model was interpreted in the study. Regression Analysis Table 6: OLS Regression Model Variables Coef(p-value) Constant 0.267 (0.000)*** Independent variables CEOG 0.128 (0.029)** CEOFX -0.070 (0.120) CEOTE 0.039 (0.037)** Control variables FSZ 0.001 (0.000)*** FAG 0.019 (0.245) PRF 0.204 (0.380) R-square 0.124 F-stat 5.97 (0.000) Source: Stata Output, 2023 Note: DA*-1 Discretionary accruals 1% level of significance *** 5% level of significance ** 10% level of significance * The outcome of the OLS model chosen for the research based on the Hausman specification test is shown in table 6 above. According to the regression analysis, Gusau Journal of Accounting and Finance, Vol. 5, Issue 1, April, 2024 80 the variables might explain variations in the financial reporting quality of Nigerian listed consumer products companies by 12.4%. The low R Square matches the findings of two Nigerian investigations, Yahaya (2020): 16.3% and Ashafoke et al. (2021): 18.4%. A value of 5.97 and a p-value of 0.000 are revealed by the F- statistics chi square, indicating significance at the less than 5% level. This indicates that the model fits and is sufficient. Additionally, it demonstrates that the factors taken together have a noteworthy impact on the financial reporting quality (FRQ) of Nigeria's listed consumer products companies. CEO Gender and Financial reporting Quality The result from table 6 showed that CEO gender (CEOG) has a coefficient of 0.128 and a p-value of 0.029 which is significant at 5% level of significance. This showed that CEO gender has negative and significant effect on financial reporting quality of listed Consumer firms in Nigeria. This implied that presence of female CEO will improve the FRQ by 0.128. This further suggested that presence of Female CEO reduce opportunistic behavior and enhances quality of FRQ in the sample firms. This finding proved that that women often exhibit more risk-averse behavior and may prioritize long-term sustainability over short-term gains which can lead to more conservative and ethical financial reporting practices. The finding aligned with Upper Echelon theory of a positive relationship and prior studies by Al-Shaer and Zaman (2016), Alqatamin, et al. (2017) Belot and Serve, (2018). Soares et al. (2018) proved that women-managed businesses appear to outperform their male counterparts in terms of quality of reporting earnings. On the contrary, Ashafoke et al. (2021); Mohammad et al. (2020) and Al-Othman & Al-Zhoubi (2019) discovered that there is no link between the gender of the CEO and earnings management. CEO Financial Expertise and Investment Efficiency Table 6 revealed that CEO financial expertise has negative and insignificant effect on FRQ of listed consumer goods firms’ n in Nigeria. This is evidence by a coefficient of -0.070 and p-value of 0.120 which is insignificant at 5% level of significance. This implied that when firms appoint financial expertise as CEO, this does not have any effect on FRQ of consumer firms in Nigeria, invariably, financial expertise of the CEO will not influence on FRQ. Although, CEOs with financial expertise may have a deeper understanding of how financial reporting decisions can impact their personal financial incentives which may create conflicts of interest, potentially leading to reporting practices. According to the finding, the effect is minimal and not substantial. This is in line with prior finding Gusau Journal of Accounting and Finance, Vol. 5, Issue 1, April, 2024 81 of Jiang, et al., (2013). This finding is not in conformity with the finding of Gounopoulos and Pham, (2018) who reported that CEOs with financial expertise are less likely to manage earnings either through accruals and real earnings. CEO Tenure and Financial Reporting Quality Table 6 shows that CEO tenure (CEOTEN) has a coefficient of 0.039 and a p-value of 0.029 which is not significant at less than 5% level of significance. It suggests that any increase in the tenure of the chief executive officer will improve FRQ by 0.039. This finding proved that CEO TEN positively influence FRQ of listed consumer goods companies in Nigeria. These findings are consistent with those of Ashafoke et al. (2021), Bouaziz et al. (2020), Ali & Zhang (2015), and others who have also found that CEOs manipulate accounting results from the start of their mandate until the end of it. A long-serving CEO is more committed to enhancing the company's circumstances and fostering the expansion and development of the enterprise than a younger which can lead to more accurate and transparent financial reporting. Also, this could result from the fact that CEOs with longer tenures are often well-known in the industry and among investors. Their reputations are at stake with each financial report, which can incentivize them to maintain high reporting quality to protect their personal and professional credibility. This finding is in conformity with upper echelon theory which predicted a positive relationship for longer tenure CEO and financial reporting quality. The finding is contrary to Mohammad et al. (2020) who found that CEO tenure does not affect FRQ. The findings provide valuable insight to policymakers, regulators and investors by suggesting that the impact of CEO characteristics on FRQ of listed consumer goods firms in Nigeria is weak (R square is 12.5%). The results indicate that there is a need for boards of directors, investors, and regulatory agencies to enhance Financial Reporting Quality (FRQ) in response to CEO tenure and gender attributes. This provides need for firms in the consumer goods industrial in Nigeria to strengthen their corporate governance practices, by ensuring that characteristic of the CEO who is also an executive director on the board is evaluated well to encourage diversity and ethical reporting standard. 5. Conclusion and Recommendations This study examines the effect of CEO characteristics and financial reporting quality of listed consumer goods firms in Nigeria for the period 2013 to 2022. CEO characteristics such as tenure, financial expertise, and gender were utilized to examine the effects on financial reporting quality. The results revealed that CEO Gusau Journal of Accounting and Finance, Vol. 5, Issue 1, April, 2024 82 Gender and Tenure have positive and significant effect on financial reporting quality of listed consumer goods firms in Nigeria, CEO financial expertise has negative and insignificant effect on financial reporting quality of listed consumer goods firms in Nigeria. The study concluded that firms with female CEOs and longer tenured CEOs engage less in earnings manipulation and have better financial reporting quality while firm with CEO with financial expertise does not influence financial reporting quality. The study recommends that board of directors of the consumer goods firms in Nigeria should encourage gender diversity at the executive level through policies and initiatives that promote equal opportunities for women. Greater gender diversity in leadership can contribute to improved financial reporting quality. Further, Female CEOs, as well as male CEOs, in the consumer goods firms in Nigeria should prioritize ethical and transparent financial reporting practices and foster a culture of integrity within the company. Finally, potential and current investors in the consumer goods firms in Nigeria consider CEO tenure as a positive factor when evaluating investments in consumer goods firms as longer tenures may indicate stability and the potential for strong financial reporting practices. The study on CEO characteristics and financial reporting quality is limited to consumer goods firms in Nigeria and measurement of financial reporting quality was done using Dechow et al. (1995). Hence further studies should explore another industries or sectors. Accrual models (e.g, Kothari et al., 2005) or working capital model (e.g, Dechow & Dichew, 2002) can create an avenue for further research. An area worthy of further research is the interaction between CEO characteristics and the composition of the board of directors. How do board characteristics, such as diversity and independence, moderate or amplify the effects of CEO attributes on reporting quality? References Ali, A. & Zhang, W. (2015). 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