Earnings Management and Its Implications on Management of Quoted Manufacturing Firms in Nigeria

Ikenna Elias Asogwa; Etim Osim Etim; Yomi Besidone

doi:doi:10.11648/j.ijls.20220501.22

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Earnings Management and Its Implications on Management of Quoted Manufacturing Firms in Nigeria

Ikenna Elias Asogwa, Etim Osim Etim, Yomi Besidone

Published in International Journal of Law and Society (Volume 5, Issue 1)

Received: 19 January 2022 Accepted: 8 February 2022 Published: 16 February 2022

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Abstract

This study is motivated by concerns investors and other financial reports users have shown after observing many business failures shortly after declaring impressive financial performance. The relationship that may subsist between diverse performance measurements and earnings management in selected manufacturing companies in Nigeria is explored. Twenty-seven (27) firms listed on the Nigerian Stock Exchange (NSE) were purposively drawn for the study using published financial statements for the period 2008-2015. Further, a questionnaire was designed and administered to customers and staff of the companies included in the study. Pooled regression and panel data analysis were carried out and the results show that financial variables of leverage and growth, as well as the non-financial variable perceived quality, significantly influence Discretionary Accruals. Consequently, users of financial reports are encouraged to use both financial and non-financial measures to evaluate companies. The research also emphasized the need for the financial and regulatory authorities to intensify efforts in ensuring that firms manage their earnings properly.

Published in	International Journal of Law and Society (Volume 5, Issue 1)
DOI	10.11648/j.ijls.20220501.22
Page(s)	101-108
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2022. Published by Science Publishing Group

Keywords

Earnings Management, Business Failures, Financial Reports, Financial and Non-Financial Performance Measures

References

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APA Style

Ikenna Elias Asogwa, Etim Osim Etim, Yomi Besidone. (2022). Earnings Management and Its Implications on Management of Quoted Manufacturing Firms in Nigeria. International Journal of Law and Society, 5(1), 101-108. https://doi.org/10.11648/j.ijls.20220501.22

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ACS Style

Ikenna Elias Asogwa; Etim Osim Etim; Yomi Besidone. Earnings Management and Its Implications on Management of Quoted Manufacturing Firms in Nigeria. Int. J. Law Soc. 2022, 5(1), 101-108. doi: 10.11648/j.ijls.20220501.22

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AMA Style

Ikenna Elias Asogwa, Etim Osim Etim, Yomi Besidone. Earnings Management and Its Implications on Management of Quoted Manufacturing Firms in Nigeria. Int J Law Soc. 2022;5(1):101-108. doi: 10.11648/j.ijls.20220501.22

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@article{10.11648/j.ijls.20220501.22,
  author = {Ikenna Elias Asogwa and Etim Osim Etim and Yomi Besidone},
  title = {Earnings Management and Its Implications on Management of Quoted Manufacturing Firms in Nigeria},
  journal = {International Journal of Law and Society},
  volume = {5},
  number = {1},
  pages = {101-108},
  doi = {10.11648/j.ijls.20220501.22},
  url = {https://doi.org/10.11648/j.ijls.20220501.22},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijls.20220501.22},
  abstract = {This study is motivated by concerns investors and other financial reports users have shown after observing many business failures shortly after declaring impressive financial performance. The relationship that may subsist between diverse performance measurements and earnings management in selected manufacturing companies in Nigeria is explored. Twenty-seven (27) firms listed on the Nigerian Stock Exchange (NSE) were purposively drawn for the study using published financial statements for the period 2008-2015. Further, a questionnaire was designed and administered to customers and staff of the companies included in the study. Pooled regression and panel data analysis were carried out and the results show that financial variables of leverage and growth, as well as the non-financial variable perceived quality, significantly influence Discretionary Accruals. Consequently, users of financial reports are encouraged to use both financial and non-financial measures to evaluate companies. The research also emphasized the need for the financial and regulatory authorities to intensify efforts in ensuring that firms manage their earnings properly.},
 year = {2022}
}

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TY  - JOUR
T1  - Earnings Management and Its Implications on Management of Quoted Manufacturing Firms in Nigeria
AU  - Ikenna Elias Asogwa
AU  - Etim Osim Etim
AU  - Yomi Besidone
Y1  - 2022/02/16
PY  - 2022
N1  - https://doi.org/10.11648/j.ijls.20220501.22
DO  - 10.11648/j.ijls.20220501.22
T2  - International Journal of Law and Society
JF  - International Journal of Law and Society
JO  - International Journal of Law and Society
SP  - 101
EP  - 108
PB  - Science Publishing Group
SN  - 2640-1908
UR  - https://doi.org/10.11648/j.ijls.20220501.22
AB  - This study is motivated by concerns investors and other financial reports users have shown after observing many business failures shortly after declaring impressive financial performance. The relationship that may subsist between diverse performance measurements and earnings management in selected manufacturing companies in Nigeria is explored. Twenty-seven (27) firms listed on the Nigerian Stock Exchange (NSE) were purposively drawn for the study using published financial statements for the period 2008-2015. Further, a questionnaire was designed and administered to customers and staff of the companies included in the study. Pooled regression and panel data analysis were carried out and the results show that financial variables of leverage and growth, as well as the non-financial variable perceived quality, significantly influence Discretionary Accruals. Consequently, users of financial reports are encouraged to use both financial and non-financial measures to evaluate companies. The research also emphasized the need for the financial and regulatory authorities to intensify efforts in ensuring that firms manage their earnings properly.
VL  - 5
IS  - 1
ER  -

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Author Information

Ikenna Elias Asogwa

School of Business, Western Sydney University, Parramatta City Campus, Sydney, NSW
Etim Osim Etim

Department of Accounting, Faculty of Business Administration, University of Uyo, Uyo, Nigeria
Yomi Besidone

Besidone Yomi Foundation, Obodo, Warri, Nigeria

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Plain Text BibTeX RIS

APA Style

Ikenna Elias Asogwa, Etim Osim Etim, Yomi Besidone. (2022). Earnings Management and Its Implications on Management of Quoted Manufacturing Firms in Nigeria. International Journal of Law and Society, 5(1), 101-108. https://doi.org/10.11648/j.ijls.20220501.22

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ACS Style

Ikenna Elias Asogwa; Etim Osim Etim; Yomi Besidone. Earnings Management and Its Implications on Management of Quoted Manufacturing Firms in Nigeria. Int. J. Law Soc. 2022, 5(1), 101-108. doi: 10.11648/j.ijls.20220501.22

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AMA Style

Ikenna Elias Asogwa, Etim Osim Etim, Yomi Besidone. Earnings Management and Its Implications on Management of Quoted Manufacturing Firms in Nigeria. Int J Law Soc. 2022;5(1):101-108. doi: 10.11648/j.ijls.20220501.22

Copy | Download

@article{10.11648/j.ijls.20220501.22,
  author = {Ikenna Elias Asogwa and Etim Osim Etim and Yomi Besidone},
  title = {Earnings Management and Its Implications on Management of Quoted Manufacturing Firms in Nigeria},
  journal = {International Journal of Law and Society},
  volume = {5},
  number = {1},
  pages = {101-108},
  doi = {10.11648/j.ijls.20220501.22},
  url = {https://doi.org/10.11648/j.ijls.20220501.22},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijls.20220501.22},
  abstract = {This study is motivated by concerns investors and other financial reports users have shown after observing many business failures shortly after declaring impressive financial performance. The relationship that may subsist between diverse performance measurements and earnings management in selected manufacturing companies in Nigeria is explored. Twenty-seven (27) firms listed on the Nigerian Stock Exchange (NSE) were purposively drawn for the study using published financial statements for the period 2008-2015. Further, a questionnaire was designed and administered to customers and staff of the companies included in the study. Pooled regression and panel data analysis were carried out and the results show that financial variables of leverage and growth, as well as the non-financial variable perceived quality, significantly influence Discretionary Accruals. Consequently, users of financial reports are encouraged to use both financial and non-financial measures to evaluate companies. The research also emphasized the need for the financial and regulatory authorities to intensify efforts in ensuring that firms manage their earnings properly.},
 year = {2022}
}

Copy | Download

TY  - JOUR
T1  - Earnings Management and Its Implications on Management of Quoted Manufacturing Firms in Nigeria
AU  - Ikenna Elias Asogwa
AU  - Etim Osim Etim
AU  - Yomi Besidone
Y1  - 2022/02/16
PY  - 2022
N1  - https://doi.org/10.11648/j.ijls.20220501.22
DO  - 10.11648/j.ijls.20220501.22
T2  - International Journal of Law and Society
JF  - International Journal of Law and Society
JO  - International Journal of Law and Society
SP  - 101
EP  - 108
PB  - Science Publishing Group
SN  - 2640-1908
UR  - https://doi.org/10.11648/j.ijls.20220501.22
AB  - This study is motivated by concerns investors and other financial reports users have shown after observing many business failures shortly after declaring impressive financial performance. The relationship that may subsist between diverse performance measurements and earnings management in selected manufacturing companies in Nigeria is explored. Twenty-seven (27) firms listed on the Nigerian Stock Exchange (NSE) were purposively drawn for the study using published financial statements for the period 2008-2015. Further, a questionnaire was designed and administered to customers and staff of the companies included in the study. Pooled regression and panel data analysis were carried out and the results show that financial variables of leverage and growth, as well as the non-financial variable perceived quality, significantly influence Discretionary Accruals. Consequently, users of financial reports are encouraged to use both financial and non-financial measures to evaluate companies. The research also emphasized the need for the financial and regulatory authorities to intensify efforts in ensuring that firms manage their earnings properly.
VL  - 5
IS  - 1
ER  -

Copy | Download