EFFECT OF OWNERSHIP STRUCTURE ON EARNINGS MANAGEMENT OF LISTED CONSUMER GOODS FIRMS IN NIGERIA

The study used panel multiple regression to determine the effect of ownership structure on earnings management of consumers’ goods firm in Nigeria from 2009 to 2018 using ex-post facto research design. Ownership structure was measure by managerial ownership, institutional ownership and ownership concentration while earnings management was measure by modified Jones model and the population of the study comprises 21 listed consumer goods firms in Nigeria as at 31st December, 2018. It was discovered that managerial ownership and ownership concentration has negative significant effect on earnings management while institutional ownership has positive significant effect on earnings management thus, the study concludes that increase in managerial ownership and ownership concentration will decrease earnings management of consumer goods firms in Nigeria. Based on the conclusion, the study recommends that the managers of consumer goods firms should be allowed to own a substantial share in the company because they will align their interest to that of the organization hence, it will reduce earnings management practice in the organization.