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- Title
An Evaluation of Factors Determining Earnings Management in Nigeria.
- Authors
Abdullahi, L. B.; Ibrahim, S. O.
- Abstract
Earnings management has been a source of concern to the relevant stakeholders in financial reporting in the recent time. Consequences of the practice range from loss of investments to total collapse of the affected firms and ultimately, loss of jobs. Hence, the main objective of this study is to evaluate factors determining earnings management in Nigeria. Specifically, the study assesses the impact of capital market reform on the earnings management and examines how: firm's size; institutional shareholding; board size; independence of the board of directors; and auditors' independence, influence earnings management drive of the managers. The study employed secondary data that covered the period between 2009 and 2013. The data obtained were subjected to panel estimated generalised least square method of regression analysis. The study revealed that firm size, board size, independence of the board; exert significant influence at 5% level of significance on managers' drive to engage in earnings management. The study therefore recommends among others that The Nigerian Security and Exchange Commission should as a matter of policy direct every listed firm to have a stated minimum number of independent directors on its board of directors; and concludes that such measure will reduce earnings manipulation in Nigeria.
- Subjects
FINANCIAL statements; EARNINGS management; STOCK exchanges; INTERNATIONAL Financial Reporting Standards; WORLDCOM Inc.
- Publication
Amity Global Business Review, 2017, Vol 12, p33
- ISSN
0975-511X
- Publication type
Article