ABSTRACT

The study focused on corporate governance and earnings quality of listed Agricultural firms in Nigeria. Ex-post facto research design was adopted. Data were collected through secondary means from annual financial reports and accounts of the listed Agricultural firms in Nigeria. The population of the study is made up of all the five Agricultural firms listed on Nigeria Exchange Group. There is no need for sample size since the population size is the same as the sample size. Panel data based multiple regression analysis was used to analyze the data. The findings revealed that board size and audit committee size have significant effect on earnings quality of listed agricultural firms while board independence and gender diversity do not have significant effect on earnings quality of listed agricultural firms. Therefore, the study concluded that corporate governance in size (board size and audit committee size) determines the earnings quality of agricultural firms in Nigeria. Based on the findings, the study recommends the need for comprehensive evaluation of corporate governance systems of companies. Though there is yet no consensus on what number constitutes an optimal board size, the study recommends that companies with more diverse ownership interest and shareholders need to structure its board such that all key interests are represented. The study also recommends the need for more levels of board independence. Independent board members are a key component of effective corporate governance because of the expertise and objectivity that they bring to companies.  Also, there is a need to review and strengthen the composition and role of the audit committee especially as regards their monitoring and oversight function on the financial reports to improve the earnings quality of firms.