| dc.description.abstract | Following the significant increase of corporate failures and financial scandals
worldwide and collapse of once high profile companies among them Enron and
WorldCom in the US, investigations in to the quality and credibility of financial
reports and effectiveness of corporate governance mechanisms more precisely the
board structure have been carried out. The board structure has a great influence on the
performance of the company. In Kenya, corporate failures have been experienced due
to weak corporate governance mechanisms within the organizations. This study
sought to determine the effect of board structure on earnings management of
companies listed at the Nairobi Securities Exchange. The study used a descriptive
study that is intended to explain a characteristic behavior of one variable because of
another variable. The population of study included 64 listed firms in Nairobi
securities Exchange as at 31 December 2014. The study used secondary data. The
study used a multiple regression model to establish the relationship between the board
structure and earnings management. The study revealed that the size of the board,
board independence, board activity, gender diversity, age diversity, ethnic diversity
and financial leverage strongly affect earnings management among firms listed in the
Nairobi securities Exchange. The study found that size of the board and board
independence negatively affects earning management among firms listed in the
Nairobi Securities Exchange. The study further established that size of the board,
board independence; board activity, gender diversity, age diversity, ethnic diversity
and financial leverage were significantly influencing the earnings management among
firms listed in the Nairobi Securities Exchange. The study found that board activity,
gender diversity, age diversity, ethnic diversity and financial leverage positively affect
earnings management among firms listed in the Nairobi Securities Exchange. | en_US |
