Moderating Effect of Firm Age on the Relationship Between Ownership Structure and Earnings Management of Oil and Gas Firms in Nigeria

Abstract

The study examined the moderating effect of firm age on the relationship between ownership structure and earnings management of oil and gas firms in Nigeria. The study was motivated by a slight decrease in revenue from the oil and gas contribution to national income. Two proxies of ownership structure were employed in the study; that include ownership concentration and managerial ownership while discretionary accruals proxy earnings management. The study analyzed a total of 10 listed firms over 10 years observation obtained from annual reports of the affected firms between the period of 2014-2023.Panel data regression was employed as model of analyses. Findings from the study indicated a significant and positive relationship between the moderation of ownership concentration
by firm age on earnings management and that of managerial ownership and firm age on earnings management. The study therefore, recommend a
downward review of both ownership concentration share proportion as well as that of managerial ownership, which should be guided by policy directives.