3 Research methodology
To achieve the objectives of this study, the annual report for the period 2006-2011 were analyzed. The choice of this period arises based on the series of corporate frauds arising from firms in Nigeria due to poor corporate governance practice. However, using the judgmental sampling technique; a total of 40 listed firms operating in high profile industries in the Nigerian Stock Exchange were analysed. TTiis represents 20.5% of the total population. This is consistent with the propositions of Krejcie & Morgan (1970) where a minimum of 5% of a defined population is considered as an appropriate sample size in making generalization. The choice of the sampled firms was based on the size, market capitalization and the availability of the annual report of the sampled firms. Nevertheless, in testing the research hypothesis, the ordinary least square (OLS) was used in the estimation of the regression equation under consideration.
Specifications of the Econometric Model:
The following model is used to examine the association between independent and the dependent variables of the listed firms in Nigeria.