ABSTRACT

This study examined the effect of accounting estimates on financial performance of listed companies in Nigeria. The main objective ofthis study is to examine the effect of accounting estimates on the financial performance of listed companies in Nigeria With its specific objectives as follows; to ascertain the effect of provisions for bad debt on the profit after tax or list companies, to determine the effect of provisions for employee benefit on profit after tax of listed companies. The study is limited to listed manufacturing companies in Nigeria. In relation to the objectives ofthe study, two null hypotheses were formulated and tested at 5% level of significance.The Ex-post factor research design was adopted to achieve the aforementioned objectives. To this end, the secondary source of data was adopted to obtain data from four out of five listed agro firms in the Nigeria Stock Exchange and this data covered the period between 2009-2018 for analysis. The results reported that; provisions for bad debt has no significant effect on the profit after tax of listed firms in Nigeria, provisions for employee benefit has no significant effect on the profit after tax of listed firms in Nigeria.Ultimately, after summary and conclusion, the study disclosed that provisions for bad debt has a negative insignificant effect on the profit after tax of listed firms in Nigeria, provisions for employee benefit has a positive insignificant effect on the profit after tax of listed firms in Nigeria. And as such it was recommended that proper estimates should be made to capture the real cost incurred so as to determine its effect on firm profitability.