CORPORATE GOVERNANCE AND EARNINGS MANAGEMENT IN NIGERIA: A SYSTEMATIC REVIEW
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Abstract
Despite the introduction of significant corporate governance reforms, particularly the
Nigerian Code of Corporate Governance (2018), earnings management continues to
pose a major challenge in Nigeria, raising concerns over the credibility and reliability
of financial reporting. The review focused on governance mechanisms such as board
independence, board size, audit committee effectiveness, ownership concentration, and
gender diversity, while distinguishing between accrual-based and real earnings
management. Weak institutional enforcement, and cultural factors continue to limit the
effectiveness of governance mechanisms in curbing opportunistic financial reporting.
Against this backdrop, there is a need for a systematic synthesis of existing evidence to
clarify the governance–earnings management nexus in the Nigerian context. This study
systematically reviewed fifty-two (52) peer-reviewed articles published between 2020
and 2025 that examined the relationship between corporate governance and earnings
management in Nigeria. Guided by the PRISMA review protocol, relevant studies were
identified across leading databases and analyzed using both descriptive and thematic
approaches. The findings reveal mixed evidence: while certain governance
mechanisms— Governance mechanisms like board structure, ownership concentration,
audit quality, and gender diversity influence earnings management, but their impact in
Nigeria is limited by weak enforcement, political ties, tokenism, and inconsistent
regulatory implementation. The review highlights that corporate governance in Nigeria
shows progress in enhancing accountability, yet remains largely symbolic and uneven
in practice. This study contributes theoretically by adopting a multi-theoretic
perspective and offers practical recommendations, including stronger regulatory
enforcement, improved board composition, auditor independence, and the promotion
of ethical corporate cultures to foster transparent reporting.