[PDF] Earnings Management Of Publicly Listed Companies In Nigeria eBook

Author : Kehinde Sadiq
Publisher :
Page : pages
File Size : 35,99 MB
Release : 2015
Category :
ISBN :

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This study documents the deterministic factors and the magnitude of earnings management of Nigerian firms by applying five discretionary accruals models using the cohort of 62 firms listed on the Nigerian Stock Exchange (NSE) over a period of 2003-2012. It is observed that the Kothari et al. (2005) performance matched model provides better explanatory power to determine the magnitude of earnings management of Nigerian companies. Using this model, the study finds that the magnitude of earnings management is 5.02 percent, on average. However, the industry-wise analyses disclose that earnings management is dominant within the manufacturing and energy sector of the Nigerian economy at 48.38 percent followed by the 41.93 percent in the consumer goods sector. The study reveals that the effectiveness of monitoring role by internal and external shareholders is insignificant in improving firm's transparency in financial reporting activities. This finding is indeed useful for Nigerian companies and policymakers to restructure the dynamics of ownership structure in a way that can reduce the extent of earnings management in the manufacturing, energy and consumer goods sectors in Nigeria. --Leaf ii.

Author : Ademola Akinteye
Publisher : GRIN Verlag
Page : 862 pages
File Size : 12,91 MB
Release : 2019-12-09
Category : Business & Economics
ISBN : 334607871X

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Doctoral Thesis / Dissertation from the year 2015 in the subject Business economics - Investment and Finance, grade: Great Distinction, UGSM-Monarch Business School Switzerland (Accounting and Finance), course: Doctor of Philosophy in Finance, language: English, abstract: The dissertation examined Earnings Management and Corporate Governance Governance Practices of the firms that are listed on the floor of the Nigerian Stock Exchange. The researcher investigated the published financial statements of all the listed companies across all the sectors of the exchange using empirical quantitative research methods. Al the variables of earnings management were extracted from the published annual financial statements and Directors Annual Reports through Content Analysis. The paper further explored all the variables of corporate governance as published by the Directors in the Annual Reports in the Financial Statements and through a face to face recorded interviews of the members of the Board of Directors, the members of the Audit Committees and the Heads of Internal Audit Functions in the Listed Public Companies. The study documented that companies that are listed on the Nigerian Stock Exchange are involved in both the upward and downward earnings management practices. This findings cut across all the Sectors and categorization of the companies on the Nigerian Stock Exchange. The research thus recommended the need for better oversight by the Board of Directors, the Audit Committee and the Market Regulators mainly the Security and Exchange Commission and the Nigerian Stock Exchange. The findings of the Research on Corporate Governance is mixed. In certain sectors, evidence of strong corporate governance are documented as reflected in the quality of Board Members, the Quality of the deliberations at the Board meetings, the independence of the Board, the independence of the Audit Committee and the independence and effectiveness of the Head of the Internal Audit function measured by the reporting line of the holder of this role. In some sectors, the ingredients of strong corporate governance were missing thus suggesting a need for a more stricter regime of corporate governance to be implemented in these corporations.

Author : Ademola Akinteye
Publisher :
Page : 868 pages
File Size : 12,90 MB
Release : 2019-10-22
Category :
ISBN : 9783346078728

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Doctoral Thesis / Dissertation from the year 2015 in the subject Business economics - Investment and Finance, grade: Great Distinction, UGSM-Monarch Business School Switzerland (Accounting and Finance), course: Doctor of Philosophy in Finance, language: English, abstract: The dissertation examined Earnings Management and Corporate Governance Governance Practices of the firms that are listed on the floor of the Nigerian Stock Exchange. The researcher investigated the published financial statements of all the listed companies across all the sectors of the exchange using empirical quantitative research methods. Al the variables of earnings management were extracted from the published annual financial statements and Directors Annual Reports through Content Analysis. The paper further explored all the variables of corporate governance as published by the Directors in the Annual Reports in the Financial Statements and through a face to face recorded interviews of the members of the Board of Directors, the members of the Audit Committees and the Heads of Internal Audit Functions in the Listed Public Companies. The study documented that companies that are listed on the Nigerian Stock Exchange are involved in both the upward and downward earnings management practices. This findings cut across all the Sectors and categorization of the companies on the Nigerian Stock Exchange. The research thus recommended the need for better oversight by the Board of Directors, the Audit Committee and the Market Regulators mainly the Security and Exchange Commission and the Nigerian Stock Exchange. The findings of the Research on Corporate Governance is mixed. In certain sectors, evidence of strong corporate governance are documented as reflected in the quality of Board Members, the Quality of the deliberations at the Board meetings, the independence of the Board, the independence of the Audit Committee and the independence and effectiveness of the Head of the Internal Audit function measur

Author : Bazeet Badru
Publisher :
Page : 0 pages
File Size : 21,82 MB
Release : 2019
Category :
ISBN :

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This study analyses the aspects of real earnings management proxy that involves sales manipulation employ by companies to improve current performance against the future performance. The main objective was centered on whether manipulation of earnings to show good performance in the current period has implication on future performance. In order to achieve the objective, secondary data for a total number of 117 company year observations over a period from 2009 to 2011 was used. The empirical analysis in this study provides evidence that the larger percentage of Nigerian companies engage in sales manipulation to mimic strong performance in the current period, which later has adverse consequences on their future performance. The implication is that real earnings management through sales manipulation has a negative effect on the future performance. Based on the results, it can be concluded that real earnings management has a negative influence on the future performance of companies. The study infers that this explains why most of the Nigeria companies could not survive in the long term because the manager's deceive investors by managing earnings to falsify performance.

Author : Gabriel M. Tyokoso
Publisher :
Page : 36 pages
File Size : 15,95 MB
Release : 2019
Category :
ISBN :

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This paper examines the effect of audit quality attributes on earnings management of listed oil marketing companies in Nigeria. Secondary data were extracted from nine companies listed on the Nigerian Stock Exchange (NSE) from 2009 to 2014 and analyzed using panel multiple regression technique. The result of Hausman specification test suggests that the fixed effect regression model is most appropriate for the dataset. The result of the fixed effect regression model showed that audit firm size, auditor industry specialization, client importance and audit committee financial expertise are positively associated with earnings management of the firms at 1%, 5%, 1% and 5% level of significance respectively. In contrast, auditor tenure and the interaction between audit committee financial expertise and auditor industry specialization were negatively and significantly associated with earnings management of the firms at 5% level of significance respectively. The paper therefore concludes that audit quality has significant effect on earnings management of listed oil marketing companies in Nigeria. In line with the findings, the paper recommends among others that public companies who hire the services of audit firms in Nigeria should judge audit firms on the basis of performance in prior assignments and not just the size of the audit firm in view of the fact that audit firm size is not associated with less earnings management of Nigerian firms. Also, regulatory authorities such as SEC should come out with a policy that will encourage audit firms in Nigeria to specialize along industry lines of companies listed on the Nigerian Stock Exchange (NSE) to enable effective audit service. Regulatory bodies such as SEC and Financial Reporting Council of Nigeria (FRCN) should also come out with a policy that makes it mandatory for Nigerian companies to publish both audit and non-audit fees paid to their auditors. The disclosure of both fees will enable users of audited financial statements in Nigeria to determine the level of auditor client importance and consequently, the reliance to place on the auditor's report.

Author : Malek El Diri
Publisher : Springer
Page : 120 pages
File Size : 10,56 MB
Release : 2017-08-20
Category : Business & Economics
ISBN : 3319626868

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This book provides researchers and scholars with a comprehensive and up-to-date analysis of earnings management theory and literature. While it raises new questions for future research, the book can be also helpful to other parties who rely on financial reporting in making decisions like regulators, policy makers, shareholders, investors, and gatekeepers e.g., auditors and analysts. The book summarizes the existing literature and provides insight into new areas of research such as the differences between earnings management, fraud, earnings quality, impression management, and expectation management; the trade-off between earnings management activities; the special measures of earnings management; and the classification of earnings management motives based on a comprehensive theoretical framework.

Author : Junaidu Kurawa
Publisher :
Page : 18 pages
File Size : 17,18 MB
Release : 2016
Category :
ISBN :

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This study examines the relationship between corporate governance and earnings management of the six petroleum and petroleum products distributors out of the nine petroleum products distributors that are listed on the floor of the Nigeria Stock Exchange. Data were collected from the Annual reports and accounts of the sampled companies covering the period of ten years from 2003 to 2012. Descriptive statistics, correlation as well as panel data analysis (Random-effect GLS regression techniques) were utilized as analytical tools in the study. The results indicate that going concern is significantly and positively driven by board composition and management equity holding while board composition, CEO duality, and ownership concentration show an insignificant (2%) negative relationship. It is recommended that the position of the Chairman and Managing Director should be separated; a competent board size of 8 to 15 members should be encouraged, so as to ensure strong compliance to the Code of Corporate Governance 2006, and uphold ethical standard of accounting profession in resources management to guide against creative accounting and earnings manipulations which could lead to going concern problems.

Author : Vieira, Elisabete S.
Publisher : IGI Global
Page : 433 pages
File Size : 36,7 MB
Release : 2021-02-12
Category : Business & Economics
ISBN : 1799875989

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New trends are emerging regarding earnings management and corporate governance showing similarities and striking differences in the practices of different countries and economies. These new trends currently shape the field of modern corporate governance with crucial issues being looked at in governance law and practices, accounting systems, earnings quality and management, stakeholder involvement, and more. In order to advance these new avenues in corporate governance, research looks at accounting policies firms use in different opportunistic circumstances in order to manage earnings, the corporate governance practices in different countries, firm performance, and other dimensions of companies. The understanding of these topics is beneficial in understanding the current state of different types of firms and their practices in modern times. Comparative Research on Earnings Management, Corporate Governance, and Economic Value is focused on the investigation of key challenges and perspectives of corporate governance and earnings management and outlines possible scenarios of its development. The chapters explore this new avenue of research and cover theoretical, empirical, and experimental studies related to different themes in the global context of earnings management and corporate governance. This book is ideal for economists, businesses, managers, accountants, practitioners, stakeholders, researchers, academicians, and students who are interested in the current issues and advancements in corporate governance and earnings management.

Author : Michael I. C. Nwogugu
Publisher : Routledge
Page : 275 pages
File Size : 21,8 MB
Release : 2019-11-01
Category : Business & Economics
ISBN : 1317146557

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Traditional research about Financial Stability and Sustainable Growth typically omits Earnings Management (as a broad class of misconduct), Complex Systems Theory, Mechanism Design Theory, Public Health, psychology issues, and the externalities and psychological effects of Fintech. Inequality, Environmental Pollution, Earnings Management opportunities, the varieties of complex Financial Instruments, Fintech, Regulatory Fragmentation, Regulatory Capture and real-financial sector-linkages are growing around the world, and these factors can have symbiotic relationships. Within Complex System theory framework, this book analyzes these foregoing issues, and introduces new behaviour theories, Enforcement Dichotomies, and critiques of models, regulations and theories in several dimensions. The issues analyzed can affect markets, and evolutions of systems, decision-making, "nternal Markets and risk-perception within government regulators, operating companies and investment entities, and thus they have Public Policy implications. The legal analysis uses applicable US case-law and statutes (which have been copied by many countries, and are similar to those of many common-law countries). Using Qualitative Reasoning, Capital Dynamics Theory (a new approach introduced in this book), Critical Theory and elements of Mechanism Design Theory, the book aims to enhance cross-disciplinary analysis of the above-mentioned issues; and to help researchers build better systems/Artificial-Intelligence/mathematical models in Financial Stability, Portfolio Management, Policy-Analysis, Asset Pricing, Contract Theory, Enforcement Theory and Fraud Detection. The primary audience for this book consists of university Professors, PHD students and PHD degree-holders (in industries, government agencies, financial services companies and research institutes). The book can be used as a primary or supplementary textbook for graduate courses in Regulation; Capital Markets; Law & Economics, International Political Economy and or Mechanism Design (Applied Math, Operations Research, Computer Science or Finance).