IIARD International Institute of Academic Research and Development

Journal of Accounting and Financial Management (JAFM )

E-ISSN 2504-8856
P-ISSN 2695-2211
VOL. 9 NO. 8 2023
DOI: https://doi.org/10.56201/jafm.v9.no8.2023.pg97.112

---

Audit Quality and Earnings Management of Listed Manufacturing Firms in Nigeria

Lawrence, U. Egbadju

---

Abstract

This study investigates whether there is any relationship between audit committee characteristics and financial restatement. Using secondary data over the period from 2009 to 2020 of 12 non- financial firms, the results of the Panel Estimated Generalized Least Squares (EGLS Period SUR) reveal that audit firm size, audit tenure, audit fees, audit firm age and joint audit are negatively and statistically significant with earnings management while audit independence has a positive and significant impact of earnings management. The overall results shows that audit quality significantly influenced earnings management and that help in reducing managers tendencies to reduce the practices of managing earnings for whatever the reasons. The study concludes with some recommendations for better performance reporting.

keywords:

Audit Quality, Earnings Management, Quoted, Non-Financial Firms, EGLS.

---

References:

AdhityaAgri, P. & FitoMela, N. (2019).Audit quality and earnings management: Informative
and opportunist perspective. International Journal of Scientific & Technology Research,
8(09), 1918-1922.

Ajekwe, C. C. M. & Ibiamke, A. (2017). The association between audit quality and earnings
management by listed firms in Nigeria. European Journal of Accounting, Auditing and
Finance Research, 5(1), 1-11.

Alejo, J., Galvao, A., Montes-Rojas, G. M. & Sosa-Escudero, W. (2015). Tests for normality in
linear panel-data
models.
The
Stata
Journal,
15
(3),
822–832

Asegdew, K. (2016) Determinants of financial reporting quality: Evidence from
largemanufacturing share companies of Addis Ababa. Addis Ababa Univerdity
Repository.

DOWNLOAD PDF

---

Back