There have been concerns regarding possible earnings manipulation within the Nigerian corporate sector. Such actions have cast doubts on the accuracy of finances and even resulted in the collapse of certain businesses. This study examines the moderating effect of board independence on the relationship between board gender diversity and earnings management of listed Deposit Money Banks in Nigeria. The study used a panel data regression technique for data analysis. Data was obtained from the audited annual reports and accounts of the banks over the period 2012-2022. Robustness tests such as normality test of standard error, multicollinearity and heteroscedasticity tests were carried out to validate the results. The findings revealed that board gender diversity has a significant negative effect on the earnings management of banks before moderation, while after moderation with board independence, it was found to have a positive and significant effect on the earnings management of banks. Therefore, board gender diversity is associated with less earnings management, while the multiplicative effect of board independence on board gender diversity does not guarantee a reduction in earnings management. The findings have important policy implications for the Central Bank of Nigeria (CBN) which is striving to improve transparency in the banking sector. It also has policy implication which enables deposit money banks to create an inclusive and equitable environment that goes beyond mere numbers and statistics and reap the benefit of having a re-structured, re-composed, re-organized and diversified board along the findings of the study.

Keywords : Board Gender Diversity, Board Independence, Earnings Management, Upper Echelon Theory.