EFFECT OF OWNERSHIP STRUCTURE ON EARNINGS MANAGEMENT OF QUOTED CONSUMER GOODS FIRMS IN NIGERIA

Corporate governance outcomes are significantly shaped by ownership structure, especially in relation to managers' use of earnings management techniques. This study looked at how ownership structure affected the way Nigerian consumer goods firms that were quoted managed their earnings. The study used an ex-post facto research design, with the population consisting of all twenty-one (21) consumer goods firms listed on the Nigerian Exchange Group (NGX group) as of December 31, 2024, and a sample size of seventeen (17) consumer goods firms selected based on filtering criteria. The seventeen (17) consumer goods firms listed on the Nigerian Exchange Group had their annual reports where the data was taken from. Following a few diagnostic tests, the hypotheses were examined using a random effect regression model. According to the study, institutional, managerial, and foreign ownership have a negligible detrimental impact on the total discretionary accrual of Nigerian consumer goods firms that are quoted. Nonetheless, ownership concentration has a negligible positive impact on the listed consumer goods firms’ absolute discretionary accrual in Nigeria. According to the report, consumer goods firms and regulators should foster an environment that draws and keeps international investment, especially through robust investor protection legislation and stable policies. However, precautions should also be taken to avoid foreign domination that can push out local interests. In order to keep managers accountable, the report also suggested that institutional shareholders take a more active role in shareholder activism and voting rights.