Chief Executive Officers' Attributes and Transparency of Financial Disclosures: Evidence From Listed Consumer Goods Firms in Nigeria

This research examined whether the level of transparency in financial disclosures of listed firms is influenced by the attributes of Chief Executive Officers (CEO). Attributes of CEO were measured using tenure, turnover, and ownership, whereas the level of transparency in financial disclosure was measured with reference to the Beneish M-Score. The study’s focus was on listed consumer goods firms in Nigeria and secondary data which were extracted from the annual reports of sampled firms covered a 10-year period (from 2014 to 2023). The data were analysed by means of relevant robust estimation techniques. The results revealed that with a coefficient of -0.516595 and a p-value of 0.0004, CEO tenure (CEOT) has a negative and statistically significant effect on transparency, indicating that longer CEO tenure significantly reduces transparency. Similarly, with a negative coefficient of -0.237 and a probability value of 0.0101 this study also found that higher proportion of CEO’s stake in the firms’ ownership structure negatively affects the level of transparency in financial disclosure, indicating potential risks of concentrated control. Conversely, CEO turnover (CEOV) obtained a positive coefficient of 0.304093 (p-value = 0.0102), indicating that increased CEO turnover positively enhances transparency, likely due to leadership renewal and scrutiny. These findings underscore the critical role of CEO characteristics in shaping financial disclosure practices in emerging markets. The study thus recommends policy frameworks that mitigate risks associated with prolonged CEO tenure and concentrated ownership while promoting structured leadership transitions to foster investor confidence and market integrity.