The study's main objective was to examine
the relationship between board diversity and earnings quality of non-financial
firms listed on the Nairobi Securities Exchange (NSE) and how ownership
concentration acted as a moderator. As of December 31, 2020, the NSE had 39
non-financial firms listed. The secondary data was collected over a 13-year
period (2008-2020). The study used a quantitative research design and
positivist research philosophy. The data were analyzed using panel regression.
It was put through diagnostic and specification tests. The study found that
board diversity had a significant impact on non-financial firms' earnings
quality, both with and without ownership concentration as a moderator. The
moderator model outperformed the one without (ownership concentration). The
study concludes that board diversity has a significant impact on non-financial
firms traded on the NSE. The findings suggest that non-financial companies
listed on the NSE should carefully examine the criteria used to define board
diversity and its characteristics. Thus, boards will be more accountable to
shareholders, reducing earnings manipulation.
diversity, Earnings quality, Non-financial firms.