The Relationship between CEO Dualities, Directors’ Independence and Discretionary Accruals in the Nigerian Industrial Goods Companies (Published)
Separation of the two positions of CEO and Chairman as well as number of independent directors included in the board are important governance mechanisms that affect companies’ reported earnings, as requested by the code of governance due to the fact that managers are attempting to manipulate the earnings in order to meet their personal objectives. The objective of this study is to examine the relationship between CEO- duality, directors’ independence and discretionary accruals in the Nigerian industrial goods companies. A total of 24 companies in the industrial goods sector of the Nigerian stock exchange were analyzed using multiple linear regressions. Data was obtained from secondary sources alone using annual report and account of the companies for the periods of 2011 to 2014, using SPSS version 22. The results show that CEO-dualities is are significantly related to discretionary accruals, the result further suggests that holding two position by one person is not efficient in minimizing the possibility of managing earnings, therefore it is recommended that the, two position should be separated to minimize the likelihood of managing discretionary accruals practice, also, the study recommends more independent directors to be included on board, as it is capable of minimizing the tendency of manipulating accruals.
The Effects of Leadership Characteristics on Microfinance Institutions’ Social Performance in Kenya (Published)
With the growing competition of globalization, strategic decision makers have been faced with the competing interests of external and internal stakeholders such as greater diversity in corporate governance, undertaking more investments in corporate social responsibility and maximizing financial performance. As a result, strategic decision makers today must not only increase their financial performance, but also satisfy the increasing expectations of customers, suppliers and society as a whole. The objective of this study was to examine the effects of the leadership characteristics on the social performance among Kenyan MFIs. It focused on the CEO duality, gender of the CEO, CEO qualifications and experience. This study adopted positivist approach, deductive approach and explanatory research design. Population of the study consisted of all the MFIs registered by the AMFI as at 31st March 2012. Data was analysed using quantitative and qualitative methods. Qualitative data was analysed to yield descriptive, the Independent samples test and the logistic regression. The major findings of the study are: that a significant positive CEO non duality, CEO experience and overall leadership characteristics. The relationship of an MFIs social performance and the gender of the CEO and their education qualification was found to be insignificant. Overall, the results show that MFIs in Kenya can improve their Social performance by improving on their leadership characteristics.