IDEAS home Printed from https://ideas.repec.org/a/asi/aeafrj/v5y2015i2p218-228id1333.html
   My bibliography  Save this article

Assessment of the Effects of Firms Characteristics on Earnings Management of Listed Firms in Nigeria

Author

Listed:
  • Uwalomwa Uwuigbe
  • Uwuigbe Olubukunola Ranti
  • Okorie Bernard

Abstract

This study assessed the effects of firms’ characteristics on earnings management of listed companies in Nigeria. To achieve the objectives of this study, a total of 20 listed firms in the Nigerian stock exchange market were selected and analyzed for the study using the judgmental sampling technique. The corporate annual reports for the period 2006-2010 were used for the study. In testing the research hypothesis, the study adopted the use of both descriptive statistics and econometric analysis using the pooled ordinary least square regression for the listed sampled firms. Findings from the study revealed that while firm size and firms’ corporate strategy have a significant positive impact on earnings management (proxied by discretionary accruals); on the other hand, the relationship between firms’ financial leverage and discretionary accruals of the sampled firms in Nigeria was not significant. Thus, the study concludes that large firms tend to have higher motivations and more prospects to engage in the manipulation earnings and exaggerate earnings due to the intricacy of their operations and the complexity for users to identify overstatement.

Suggested Citation

  • Uwalomwa Uwuigbe & Uwuigbe Olubukunola Ranti & Okorie Bernard, 2015. "Assessment of the Effects of Firms Characteristics on Earnings Management of Listed Firms in Nigeria," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 5(2), pages 218-228.
    • Handle: RePEc:asi:aeafrj:v:5:y:2015:i:2:p:218-228:id:1333
    as

    Download full text from publisher

    File URL: https://archive.aessweb.com/index.php/5002/article/view/1333/1899
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Oyefemi Olympus OWORU & Jayeola OLABISI & Olagunju ADEBAYO & Efetobore OKORODUDU, 2020. "Does Earnings Management Practice Affect The Performance Of Listed Consumer Goods Firms In Nigeria?," Contemporary Economy Journal, Constantin Brancoveanu University, vol. 5(1), pages 94-103.
    2. Juhendra Debbarma & Chinmoy Roy, 2023. "Effects of Corporate Governance on Creative Accounting Practices: Evidence from NSE-listed Companies in India," Indian Journal of Corporate Governance, , vol. 16(1), pages 52-78, June.
    3. Kehinde Adesina & Uwalomwa Uwuigbe & Olubukola Ranti Uwuigbe & Osariemen Asiriuwa & Sylvester Oriabe, 2017. "Dividend Policy and Share Price Valuation in Nigerian Banks," EuroEconomica, Danubius University of Galati, issue 1(36), pages 185-195, May.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:asi:aeafrj:v:5:y:2015:i:2:p:218-228:id:1333. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Robert Allen (email available below). General contact details of provider: https://archive.aessweb.com/index.php/5002/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.