Effect of corporate governance board leadership models and attributes on earnings quality of quoted nigerian companies

Figures & data

Table 1. Hausman test cross-section random effect

Test Summary	Chi-SQ. Statistic	Chi-Square D.F	Probability
Cross Section Random	8.922	9	0.444

Table 2. Value relevance hausman test for random effect

Test Summary	Chi-SQ. Statistic	Chi-Square D.F	Probability
Cross Section Random	27.307	9	0.0012
Variables	Fixed Effect	Random Effect	Var. (Diff)	Prob.
ACCT	0.218	0.406	0.004	0.003
ACT*LAW	0.134	0.049	0.005	0.250
ADCC	0.627	0.100	0.024	0.001
AQ	0.158	0.153	0.001	0.869
BDZ	0.705	0.503	0.026	0.215
CEO	0.160	0.110	0.004	0.436
DEB	0.027	0.013	0.001	0.701
FAM	−0.617	0.56	0.074	0.832
FMZ	0.535	0.52	0.001	0.697

Source: Eviews; Source: Eviews; CEO = Chief executive Officers; DEB = Debt ratio; ACCT = Accounting/financial knowledge; BDZ = board size; FMZ = firm size; FAM = frequency of audit meeting; ACT*LAW = mix of accounting and law skill in boards; AQ = audit quality; ADCC = audit committee

Table 3. Descriptive statistics

Variables	N	Minimum	Maximum	Mean	Std. Deviation
CEO	185	0.00	1.00	0.7405	0.43953
DEB	185	0.00	7.57	0.7448	0.87582
ACC	185	0.00	1.00	0.2432	0.43021
BDZ	185	0.60	1.28	0.9579	0.14740
FMZ	185	5.40	9.67	7.2928	0.86499
FAM	185	0.85	1.52	1.1831	0.12491
ACT*LAW	185	0.00	1.00	0.3622	0.48193
AQ	185	0.00	1.00	0.5459	0.49924
ADCC	185	0.60	1.34	0.7876	0.12549
PERS	185	0.21	70.36	33.8521	2.57426
VALREL	185	0.01	3.19	1.0936	0.76769
Valid N (listwise)	185

Source: Eviews; PERS = Persistence; VALREL = value relevance; CEO = Chief executive Officers; DEB = Debt ratio; ACC = Accounting/financial knowledge; BDZ = board size; FMZ = firm size; FAM = frequency of audit meeting; ACT*LAW = mix of accounting and law skill in boards; AQ = audit quality; ADCC = audit committee

Table 4. Correlation matrix

Variables	PERS	VALREL	CEO	DEB	ACC	BDZ	FMZ	FAM	ACT*LAW	AQ	ADCC
PERS	1
VALREL	0.16*	1
CEO	0.31**	0.01	1
DEB	0.10	0.15	0.12	1
ACC	0.30**	0.23**	0.13	0.08	1
BDZ	0.09	0.21**	0.11	0.01	0.36**	1
FMZ	0.04	0.60**	0.17*	0.21**	0.02	0.39**	1
FAM	0.17*	0.09	0.12	0.10	0.09	0.03	0.01	1
ACT*LAW	0.06	0.10	0.13	0.12	0.05	0.02	0.06	0.07	1
AQ	0.03	0.01	0.06	0.03	0.01	0.16*	0.08	0.22**	0.03	1
ADCC	0.04	0.04	0.05	0.06	0.07	0.13	0.03	0.13	0.07	0.01	1

Source: Eviews; * = Significant at 5%; ** = Significant at 1%; PERS = Persistence; VALREL = value relevance; CEO = Chief Executive Officers; DEB = Debt ratio; ACC = Accounting/financial knowledge; BDZ = board size; FMZ = firm size; FAM = frequency of audit meeting; ACT*LAW = mix of accounting and law skill in boards; AQ = audit quality; ADCC = audit committee.

Table 5. Unit Root Test Null Hypothesis: ACIT_LE has a unit root Exogenous Constant

	T-Statistic			Prob*.
Augmented Dickey-Fuller Test	−3.770034			0.0040
Test Criteria Value	1%			−3.475184
	5%			−2.881123
	10%			−2.577291
*MacKinnon (1996) One-Sided D-Value
Augmented Dickey-Fuller Test Equation
Dependent Variable D(ACIT_LE)
Date: 09/14/19
Time: 10.05
Included Observations 185 After Observations
Variable	Coefficient	Std. Error	t-Statistic	Prob.
ACIT_LE (−1)	−0.178542	0.047358	−3.770034	0.0002
C	0.063158	0.070281	2.292372	0.0265

Source: Eviews

Table 6. Regression of board leadership and characteristic on earnings persistence

Variables	Pooled OLS Persistence Model	Random Effect Persistence Model	Fixed Effect Persistence Model	Variance Inflation Factor (VIF)
C	9.570	9.570	-
(t-Stat).	(0.366)	(0.366)	(0.463)
ACCT	20.57**	20.57**	22.993**	1.135
(t-Stat).	(4.784)	(4.784)	(4.449)
ACT*LAW	5.190	5.190*	10.356*	1.163
(t-Stat).	(1.45)	(3.105)	(2.182)
ADCC	20.376	20.376	18.836	1.066
(t-Stat).	(1.528)	(1.528)	(1.229)
AQ	1.842	1.842	3.012	1.177
(t-Stat).	(0.528)	(0.528)	(0.762)
BDZ	2.627	2.627	12.296	1.128
(t-Stat).	(0.197)	(0.197)	(0.798)
CEO	19.072**	19.072**	22.669**	1.228
(t-Stat).	(4.827)	(4.827)	(4.694)
DEB	1.388	1.388	2.959	1.324
(t-Stat).	(0.717)	(0.717)	(1.185)
FAM	35.756*	35.756*	39.489	1.060
(t-Stat).	(2.509)	(2.509)	(2.161)
FMZ	−2.426	−2.426	−4.509	1.145
(t-Stat).	(−1.043)	(−1.043)	(−1.593)
F-Stat.	5.96	5.96	1.14
Prob.(F-Stat)	0.00	0.00	0.049
R-Squared	0.28	0.28	0.397
Adjusted R-Squared	0.23	0.23	0.132
Durbin-Watson stat	1.811	1.811	2.118
Cross Section Random Effect
SD		0.00
Rho		0.00
Idiosyncratic Random
SD		21.617
Rho		1.00

Source: Eviews; * = Significant at 5%; ** = Significant at 1%; CEO = Chief Executive Officers; DEB = Debt ratio; ACC = Accounting/financial knowledge; BDZ = board size; FMZ = firm size; FAM = frequency of audit meeting; ACT*LAW = mix of accounting and law skill in boards; AQ = audit quality; ADCC = audit committee.

Table 7. Corporate governance -value relevance regression analysis output

Variables	Random Effect Value Relevance Model	Fixed Effect Value Relevance Model	Variance Inflation Factor (VIF)
C	−2.196	−2.320
(t-Stat).	(−2.453)	(3.132)
ACCT	0.218	0.406**	1.166
(t-Stat).	(1.581)	(3.33)
ACT*LAW	0.134*	0.049	1.274
(t-Stat).	(3.064)	(2.484)
ADCC	0.627	0.100	1.085
(t-Stat).	(1.532)	(0.264)
AQ	0.158	0.153	0.564
(t-Stat).	(1.506)	(1.534)
BDZ	0.705*	0.503	1.657
(t-Stat).	(1.717)	(1.336)
CEO	0.160*	0.110	1.315
(t-Stat).	(3.243)	(1.986)
DEB	0.027	0.013	1.329
(t-Stat).	(0.412)	(0.237)
FAM	0.617	0.560	1.045
(t-Stat).	(1.266)	(1.384)
FMZ	0.535	0.520**	1.126
(t-Stat).	(7.09)	(7.89)
F-Stat.	3.34	11.97
Prob.(F-Stat)	0.00	0.00
R-Squared	0.585	0.438
Adjusted R-Squared	0.417	0.401
Durbin-Watson Stat	2.266	1.716
Cross Section Random
SD		0.00
Rho		0.00
Idiosyncratic Random
SD		0.576
Rho		1.000

Source: Eviews; * = Significant at 5%; ** = Significant at 1%; CEO = Chief Executive Officers; DEB = Debt ratio; ACC = Accounting/financial knowledge; BDZ = board size; FMZ = firm size; FAM = frequency of audit meeting; ACT*LAW = mix of accounting and law skill in boards; AQ = audit quality; ADCC = audit committee.