OWNERSHIP STRUCTURE AND EARNINGS MANAGEMENT PRACTICES OF LISTED CONSUMER GOODS FIRMS IN NIGERIA

This research investigated the influence of ownership structure on earnings management within publicly traded consumer goods companies in Nigeria. The study specifically examined the impact of director ownership, institutional ownership, and block ownership on earnings management. The research utilised an ex-post facto design and leveraged panel data from the annual reports of 16 selected enterprises out of a total of 21 consumer goods firms listed on the Nigerian Exchange Group (NGX) for the period 2015– 2024. Earnings management was assessed by discretionary accruals derived from the Modified Jones Model (1995). Descriptive statistics, correlation analysis, diagnostic assessments, and panel regression methodologies were utilised for data analysis. The results indicated that director ownership exerts a negative and significant influence on earnings management, suggesting that heightened director shareholding limits earnings manipulation. Institutional ownership exhibited a positive yet negligible impact on earnings management, indicating that institutional investors do not substantially affect earnings management methods inside the tested firms. Moreover, block ownership demonstrated a positive and significant influence on earnings management, suggesting that ownership concentration may promote earnings manipulation. The research determines that ownership structure markedly affects profits management techniques within publicly traded consumer goods companies in Nigeria. The study advocates for companies to promote appropriate levels of director ownership to align the interests of management and shareholders, while regulatory bodies should intensify oversight of firms with concentrated ownership structures to safeguard minority shareholders and improve the quality of financial reporting. Keywords: Ownership structure, director ownership, institutional ownership, block ownership, earnings management, consumer goods firms, Nigeria.