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

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.

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