IIARD International Institute of Academic Research and Development

INTERNATIONAL JOURNAL OF SOCIAL SCIENCES AND MANAGEMENT RESEARCH (IJSSMR )

E-ISSN 2545-5303
P-ISSN 2695-2203
VOL. 9 NO. 11 2023
DOI: https://doi.org/10.56201/ijssmr.v9.no11.2023.pg162.188

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Earnings Management and Financial Performance of Quoted Non- Financial Firms in Nigeria

Lawrence, U. Egbadju

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Abstract

This study investigates the relationship between earnings management and the financial performance of listed firms in Nigeria. Using secondary data over the period from 2005 to 2020 of 76 firms listed on the floor of the Nigerian Exchange Group (NXG), the generalized method of moments (GMM) results reveal that while two of the measures of earnings management (Jones’ Model and Kazsnix’s Model are positively significant with firm performance (ROA); the remaining six measures (Modified Jones’ Model of Dechow et al; Kothari’s et al Model; Larcher and Richardson’s Model; Key’s Model; Dechow-Richardson-Tuna’s Model and Kangsiv’s Model) are negatively and statistically significant with firm performance (ROA). The study concludes with some recommendations.

Earnings management, Performance, Quoted Non-Financial Firms, GMM, NXG.

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References:

Ahmed, S. (2022). Impact of earnings management on firm performance: moderating role of
board structure. (Master thesis, Capital University of Science and Technology
Repository, Islamabad. Open Access).

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.

Al-Harby, Y. A. & Jarraya, B. (2022). Earnings management, conceptual framework
and
literature review: Saudi Arabia as a case study. Haya Saudi J Life Sci, 7(10), 286-293.

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