CAPITAL STRUCTURE, BOARD GENDER DIVERSITY AND EARNINGS QUALITY OF LISTED CONSUMER GOODS FIRMS IN NIGERIA

Abstract

Earning is one of the most important and probably one of the most observed information in the financial statements that is needed in the capital market for assessing the performance of firms. It discloses the profitability of the firm; the efficiency of management in the utilization of economic resources entrusted to them. In short, earnings determines the success and sustainability of the business organizations. This study examines the moderating effect of board gender diversity on the relationship between capital structure and earnings quality of listed consumer goods firms in Nigeria. To achieve the objective of this study, data were collected from annual reports and accounts of fifteen (15) sampled consumer goods firms listed on the Nigeria Group Exchange spanning from year 2010-2022. Using multivariate regression technique of analysis, the study showed that board gender diversity moderates the relationship between capital structure and earnings quality of listed consumer goods firms in Nigeria. The study recommends that members (shareholders) should advocate for equitable gender representation across boards of listed consumer goods firms in Nigeria. Also, owners/Shareholders of listed consumer goods firms should comply with policies instituted by regulators to ensure gender diversity when appointing members into the board of directors.