Journal Articles

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Subject: search.filters.subject.Corporate governance

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    Do board structure and director compensation influence financial reporting quality? Evidence from nonfinancial listed firms in Anglophone Sub-Saharan Africa
    (Emerald publishing, 2026) Kariuki, Peter W.; Nyakarimi, Samuel N.; Chepkorir, Benaline
    Purpose This study explores the influence of board structure and director compensation on the financial reporting quality of nonfinancial firms listed in Sub-Saharan Africa. Design/methodology/approach Data from 110 firms listed on 10 securities exchanges from 2017 to 2023 were utilized. The Beneish M-Score serves as a proxy for earnings manipulation, employing a limited-dependent-variable estimation methodology with a multi-country panel dataset. Following the model specification tests, a random effect model was fitted. A pooled OLS model was employed for a robustness check. Findings The study finds that larger boards and higher directors' compensation are associated with a lower likelihood of earnings manipulation, indicating improved monitoring efficacy. Additionally, larger firms are less likely to engage in earnings manipulation, underscoring the need to enhance monitoring of smaller firms. Originality/value This study bridges the gap in the literature by providing cross-country evidence of financial reporting quality in Sub-Saharan Africa, an underexplored emerging market context. It contributes to the corporate governance literature by providing empirical evidence on the influence of board structure and directors' compensation on financial reporting quality across countries.
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    Ownership structure and financial distress: is the tale from Sub-Saharan Africa different?
    (Emerald Publishing., 2025) Kariuki, Peter Wang'ombe.; Abdulkadir, Mohammed.; Kariuki, Samuel Nduati.
    Abstract Purpose The paper investigates the effect of ownership structure on the financial distress of firms listed in sub-Saharan Africa. Design/methodology/approach Using secondary data from 106 non-financial firms listed in 9 selected SSA countries from 2016 to 2021, the research using paired t-tests and conditional logistic regression model analysed a sample of 174 distressed observations matched with 174 non-distressed observations. Findings T-tests determined significant differences between distressed and non-distressed groups concerning institutional, foreign, and local ownership. Conditional logistic results established that institutional, foreign, and state ownership significantly reduce distress. However, managerial ownership does not influence financial distress while a significant positive relationship is observed between local ownership and financial distress. Originality/value This is the first study to investigate the influence of ownership structure, including local ownership, on financial distress in SSA, employing a unique methodology of matched design and conditional logistic regression analysis. Furthermore, the paper presents cross-country evidence from emerging frontier markets, highlighting the importance of governance frameworks in firms’ stability.
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    Do board structure and director compensation influence financial reporting quality? Evidence from nonfinancial listed firms in Anglophone Sub-Saharan Africa.
    (Emerald Publishing., 2026) Kariuki, Peter Wang'ombe.; Chepkorir, Benaline.; Nyakarimi, Samuel Ngigi.
    Abstract Purpose This study explores the influence of board structure and director compensation on the financial reporting quality of nonfinancial firms listed in Sub-Saharan Africa. Design/methodology/approach Data from 110 firms listed on 10 securities exchanges from 2017 to 2023 were utilized. The Beneish M-Score serves as a proxy for earnings manipulation,employing a limited-dependent-variable estimation methodology with a multi-country panel dataset. Following the model specification tests, a random effect model was fitted. A pooled OLS model was employed for a robustness check. Findings The study finds that larger boards and higher directors’ compensation are associated with a lower likelihood of earnings manipulation, indicating improved monitoring efficacy. Additionally, larger firms are less likely to engage in earnings manipulation, underscoring the need to enhance monitoring of smaller firms. Originality/value This study bridges the gap in the literature by providing cross-country evidence of financial reporting quality in Sub-Saharan Africa, an underexplored emerging market context. It contributes to the corporate governance literature by providing empirical evidence on the influence of board structure and directors' compensation on financial reporting quality across countries.