Assessing Earnings Management of Listed Companies in the Nigerian Stock Exchange (original) (raw)

Combating Financial Crimes: The Role of Accountants and External Auditors (A Study of First Bank of Nigeria Plc)

Emerging Markets: Finance eJournal, 2019

Financial crimes are on the increase in the financial sector despite the deployment of modern evolving technologies. This has created a need for the anatomy of financial crimes in the banking sector as this study focused on the role of accountants and external auditors in combating financial crimes in the financial sector. First Bank of Nigeria Plc was selected as a case study. The data collection technique used for this study is questionnaire. The respondents are made up of management staff, accountants and compliance officers of First Bank of Nigeria Plc. Data was analyzed through the use of simple percentages, tables, and Pearson Correlation Coefficient statistical method was employed for testing the hypotheses. The findings of this work revealed that accountants and external auditors play indispensable roles in fraud detection. Also, the existence of fraud in the organization is due to poor management oversight, ineffective internal control system and corruption. Based on these ...

Nigerian Public Manufacturing Companies' Financial Performance and Earnings Management

2002

This study examined profit management and publicly traded Nigerian manufacturers' financial performance. The Nigerian Stock Exchange portal and selected manufacturing companies' annual reports provided the data. The ordinary least-square method of data analysis was adopted.Pearson correlations were also made to determine the moderating effect of enterprise size on the relationship between the discretionary management of accrual accounting, the management of real earnings, and value-added. Discretionary accruals management and economic value added correlated positively and statistically. Economic added value was positively but insignificantly associated with actual earnings management. However, real earnings management does not appear to affect economic addition for Nigerian manufacturing companies. Thus, we advised against earnings management by managers. Managers should ensure they can achieve the desired outcome before implementing revenue management for the organisation's benefit.

EFFECT OF INTERGOVERNMENTAL RELATIONS (IGR) ON DEVELOPMENTAL ROLES OF BAGA/ BIRNIN KUDU LOCAL GOVERNMENT AREA, JIGAWA STATE NIGERIA.

Nasarawa Journal of Administration, 2021

Abstract Nigeria’s Intergovernmental Relations (IGR) is a clear-cut relationship constitutionally between the Federal, State, and Local Governments with among other aims Intergovernmental Social Service Delivery (IGSSD). The 1999 constitution outlined the revenue profile of each tier of government but the problem is to what extent is service delivery achieved with the IGR arrangement. This study interrogates the effect of the IGR on the developmental roles of the Baga/ Birnin Kudu local Governmental Area. The study anchored on the fiscal federalism theory, and collected data through interviews and questionnaires, while analysis was done using descriptive and inferential statistical tools. The findings include lack of autonomy; inadequate funds and continuous interference in local government administration are stumbling blocks to service delivery. The recommendation includes the need for a review of the policy of IGR and projects at the local government should not be only located in the urban. Keywords: Development, Intergovernmental Relations, Local Government, Service Delivery

Threat of Bankruptcy and Earnings Management in Nigerian Listed Banks

DOAJ (DOAJ: Directory of Open Access Journals), 2018

The study examines the impact of bankruptcy threats on the likelihood of earnings manipulation in Nigerian listed banks. There is robust empirical evidence on the relationship between bankruptcy threat and earnings management in other countries while scanty evidence exists in Nigeria, hence this study was carried out in order to see if such results obtainable in other countries may hold in Nigeria. Using Altman Z-score and Beneish M-score, the expost-facto research design within a panel framework was employed and binary regression models were used in testing the hypothesis of the study via Eview 8.0. The study period is 2011-2015. The result reveals that bankruptcy threat has no significant impact on the likelihood of an upward earnings manipulation in Nigeria listed banks. The implication is that manipulation of earnings in Nigerian banks is spurred significantly by other factors outside the threat of bankruptcy. By this, regulators and bank managements are to place less emphasis on the bankruptcy position of banks when probing into issues of earnings manipulation because banks manipulate earnings not just because of the threat of bankruptcy, as non-potentially bankrupt firms also engage in upward earnings manipulation. Using the Altman Z-score and Beneish M-score, the study contributes to literature on the relationship between bankruptcy threat and earnings manipulation and submit that non-potentially bankrupt firms involve in upward earnings manipulation.

Effect of Audit Quality on Earnings Management in Insurance Companies in Nigeria e

Athens Journal of Business & Economics, 2021

The main objective of the study is to determine the effect of audit quality on earnings management in insurance companies in Nigeria with special consideration on accruals and performance measures of earning manipulations using insurance companies in Nigeria. Preliminary analyses were conducted, such as descriptive statistics and correlation matrix. In analyzing the data, the study adopted panel multiple regression to identify the possible effects of audit quality on earnings management of financial institutions in Nigeria We interpreted fixed effect analysis after using Hausman test. The result shows that audit quality had a significant effect on earnings management. We conclude that longer stay of auditors in financial institutions increases accrual and performance manipulation. However, financial institutions audited by the Big 4 auditing firms are associated with less accrual and performance earnings manipulation while financial institutions that have executive and non-executive directors as members of audit committee have greater accrual and performance earnings manipulations. Higher number of financial experts in audit committee increases accrual manipulation while higher number of experts with accounting background in audit committee reduces performance manipulating. Finally, increase in auditors' fee leads to choices of using accounting methods to manipulate both accrual and performance earnings. Therefore, the study recommends that, financial institutions should have maximum number of years for auditors to stay. They should focus more on increasing the number of experts with accounting background in audit committees. Accounting bodies should regulate auditors' fee in line with the size of the financial institution. (JEL M42

Determinants of earnings management: The study of Nigerian nonfinancial companies

2021

Earnings management uses acceptable accounting rules and procedures, as well as evading business practices, in order to achieve desired ends. It is a form of a financial report designed by management, presented so as to obtain a private gain of some kind. There are two basic motives: opportunistic and efficient motives. Opportunistic motives are those implying that managers use their decisions to maximize their personal gains. In efficient motives, manageress window-dress a financial report so as to signal information to the users of the report (Cudia & Dela Cruz, 2018, 120). The implication of both motives is that management do not present the firm’s true economic position (Emudainohwo, 2020, 397). Rather, they mislead stakeholders, as well as prospective investors, by signaling false information about the firm’s performance as if it were true (Beaver, 2002, 468). DETERMINANTS OF EARNINGS MANAGEMENT: THE STUDY OF NIGERIAN NONFINANCIAL COMPANIES

BOOK OF PROCEEDINGS printer

Taxation, Social Contract and Economic Development. Proceedings of 4th Annual International Academic Conference of the Chartered Institute of Taxation of Nigeria (CITN). Igbinedion University, Okada, Edo State, Nigeria., 2021

Introduction I am pleased to welcome you to the third edition of the CITN Annual International Academic Conference on Taxation in a serene academic environment of Igbinedion University with the Theme: TAXATION, SOCIAL CONTRACT AND ECONOMIC DEVELOPMENT with a lined up sub-themes. We received over 100 Abstracts and those that scaled through the review process were accepted for presentation in this conference. This conference is sure an improvement on the 2nd edition and on behalf of the Institute, I wish to appreciate all the members of the Committee and staff of our great Institute and Igbinedion University that have worked tirelessly in ensuring that this edition is yet another success story. About CITN The Chartered Institute of Taxation of Nigeria (CITN), established in 1982 and chartered by Act No. 76 of 1992, now CITN Act CAP C10 Volume 2 Laws of the Federation of Nigeria 2004, is the only regulatory body for Taxation profession in Nigeria. Its membership spreads across the country with over 23,000 membership base. Since its inception, CITN has contributed immensely to various fiscal policies reforms aimed at achieving sustainable economic development in the country. CITN also promotes ways of ensuring an increase in national revenue from taxable income. Significance of the Conference The conference provides a wide range of opportunities for participants, host community, the nation and world at large, to extend the frontiers of knowledge in taxation and related fields and create a nexus for policymakers in evolving better policies. Distinguished participants, I will like to let you know that by attending this conference: i. you will benefit from various presentations on contemporary issues in Taxation, Fiscal Policy and related research findings; ii. your papers could be published in prominent Academic Journals including the prestigious Journal of Taxation and Economic Development; iii. your Abstract(s) will be published in the Book of Abstracts and read by scholars; iv. you will be able to share your experience with the entire Nigerian populace, v. there are prizes/awards for selected and outstanding papers at the Conference; vi. Participants who are members of CITN would be allocated 15 credit hours for attending this conference. One more thing and on a lither mood, if by any chance you do not like or enjoy any aspect of this conference (at our instance), kindly write to me in my capacity for the refund of your conference. Meanwhile, terms and condition apply!!! 4th Academic Conference Dear participants, I am using this opportunity to inform you that the preparation for the 4th CITN International Academic Conference will hold in August 2021. The details on the date and venue would be announced later. The collection of abstracts for the 4th International Academic Conference will commence immediately after this conference. We will be looking forward to receiving your papers and your presence at the 4th Annual Conference. Conclusion It is worth the effort to appreciate the Vice-Chancellor, Professor Lawrence Ezemonye and the Principal Staff of this revered University of Choice (our host and collaborator). I thank Dame Olajumeke Simplice, the 14th President of CITN and the entire CITN Council for approving my committee's recommendations for this Academic Conference. My appreciation goes to the members of the Conference Organizing Committee ably led by Professor Kabiru Isa Dandago, the Local Organizing Committee as led by Associate Professor Atu O.O. Kingsley (FCTI), and indeed the CITN Staff as led by Mr Mary-Fidelis Abiahu, Director, Research and Professional Standards of CITN as delegated by the Registrar/ Chief Executive, Mr Adefisayo Awogbade, for their unfaltering contributions towards making this conference a reality. It is, therefore, my singular honour and privilege to invite the Registrar and Chief Executive of the Chartered Institute of Nigeria, Mr Adefisayo Awogbade to please read the citation and invite the 14th President of our dear Institute to declare this 3rd CITN International Academic Conference on Taxation open. I thank you all once again for coming and wish us all a fruitful deliberation. Prof. Godwin Emmanuel Oyedokun, FCTI CITN Council Member Chairman, Education/Academic Conference

Corporate Tax Avoidance, Free Cash Flow and Real Earnings Management: Evidence from Nigeria

Universal Journal of Accounting and Finance, 2021

Financial statements are supposed to convey comprehensive information about firms" financial position, performance and changes in financial positions to assist a wide range of users in making economic decisions. Audited financial statements provide independent assurance that the information presented by management about the company"s financial performance and positions are true and fair. However, even with audited financial statements, there is no guarantee of zero risk of financial statements manipulation. The art of manipulating the reported earnings to achieve pre-set objectives is termed as earnings management and it can be categorized into real or accrual earnings manipulations. This study extends existing research on the real earnings management by examining the effects of corporate tax avoidance and free cash flow on real earnings management in Nigeria. The analyses involve a sample of 72 non-financial firms with 360 firm-year observations for a five-year period (2014-2018). Data was obtained from the annual reports of these companies as well as from Thompson Reuters and Bloomberg databases. Multiple regression technique was used to test the model studied. The results show that both corporate tax avoidance and free cash flow increase management"s real earnings manipulation activities. The study can benefit policymakers, shareholders, and regulators on the importance of effective internal control mechanisms to help curtail real earnings manipulations and improve the quality of reported financial statements.