IIARD International Institute of Academic Research and Development

Journal of Accounting and Financial Management (JAFM )

E-ISSN 2504-8856
P-ISSN 2695-2211
VOL. 10 NO. 12 2024
DOI: 10.56201/jafm.v10.no12.2024.pg124.134

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Effect of Accounting Conservatism on Reported Performance of Firms Listed in the Industrial Sector

Abah-Marcus, Olaladiza Princess PhD

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Abstract

The study examined the effect of accounting conservatism on reported performance of firms listed in the industrial sector. The study adopted the ex-post facto research design, which allows data existing in records of the company to be extracted. The data used was obtained from annual reports and accounts of selected and listed industrial sector companies. The population of this study comprised of all firms in the industrial sector listed in the Nigerian Exchange Group. for the period 2010 to 2023. A sample of 10 listed industrial sector companies were used. The data gathered was analyzed using ordinary least square regression technique via E-views version 9. The findings revealed that operating accrual and non- operating accrual have a negative and insignificant effect on return on assets of listed firms in the industrial sector in Nigeria. It was recommended that the management of firms in the industrial sector must find a way to implement the accounting conservatism policy without prejudice to or decline in the profits and returns or harm to the rights of shareholders.

keywords:

Accounting Conservatism, Reported Performance, Industrial Sector

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