CEO Characteristics and Earnings Quality in Nigerian Commercial Banks: An Emerging Market Perspective

Abstract This study investigated the effect of CEO characteristics on earnings quality in Nigerian commercial banks, recognizing the sector's pivotal role in economic growth and financial stability. Drawing on agency theory and secondary data from 11 banks over 2014–2023, the research examines CEO gender diversity, ownership, tenure, board interlocking membership, turnover, alongside firm age and size as control variables. The descriptive and correlation analyses reveal moderate variability in earnings quality with weak associations between CEO traits and earnings quality. Regression results indicate that CEO tenure positively influences earnings quality, while firm age negatively affects it; other CEO attributes show no significant relationship. Diagnostics affirm the robustness of the regression model without multicollinearity or heteroskedasticity issues. The findings imply that CEO characteristics alone have limited explanatory power in predicting earnings quality within Nigerian banks, suggesting stronger institutional and regulatory influences dominate financial reporting integrity. Recommendations encourage prioritizing longer CEO tenures for leadership stability and emphasize enhancing regulatory frameworks and corporate governance practices rather than focusing solely on CEO demographics.