ABSTRACT

A great deal of useful information comes from accounting functions as it

provides data which when processed, serves as useful information to the

management in its planning process. Earnings management can be

defined as the enhancement of the bottom line earnings as contain in the

Accounting information which serves as a pivot around which investors

make investment decisions because it provides a picture of the

performance (income statement) of an organization and its current

financial position (balance sheet),such accounting information as

contained in the financiül report may influences the market price of share

in the stock market.

The purpose of this paper is to examine 'the effect of earnings

management on value relevance of quoted companies in Nigeria'. A

sample of five agro-allied firms was selected between 2010- 2016. The

data collected were analysed using there gression Analysis technique with

the aid of statistical package for social sciences (SPSS, version 20.0).

Earnings management proxied by Discretionary accruals and non-

discretionary accruals, Thefindings reviewed that discretionary accruals

signfIcantly affect the value relevance offirms 'financial statement while

the Non-Discretionary accruals does not signficantly affect the value

relevance offirms 'financial statement in Nigeria.

The implication of this result is that when firms manage their earnings

using discretionary accruals, it affectsvalue relevance offirms 'financial

statement thereby affecting the share price of the firms. When firms

manage their earnings using non- discretionary accruals, it may not affect

the value relevance offirms 'financial statement which may not influence

share price of the firm.