ABSTRACT
The type of association between earnings
quality management and financial performance of listed manufacturing firms in
Nigeria has been a concern in corporate governance literature recently. From
financial uses’ standpoint, earnings quality management is an essential tool to
the users of financial information because earnings of companies are generally
important information components that must be presented in financial
statements. The study examined the effect of earnings quality management on the financial performance of
listed manufacturing firms in Nigeria.
The specific objectives of the study are; to examine the extent to which
earnings quality management affect return on equity of listed manufacturing
firms in Nigeria, to determine the effect of earnings quality management on
return on asset of listed manufacturing firms in Nigeria, to determine the
effect of earnings quality management on profit after tax listed manufacturing
firms in Nigeria and to determine the effect of earnings quality management on
return on asset of listed manufacturing firms in Nigeria. Hence the study
employed secondary data which is based on ex-post facto research design and made use of panel data set collected
for forty (40) listed manufacturing firms listed on the Nigerian Stock Exchange
for the period of 2014- 2018. The data was analyzed using simple regression
analysis technique. The study found out that earnings quality management has no significant effect on
return on equity of listed manufacturing firms in Nigeria; earnings quality
management has no significant effect on return on asset of listed manufacturing
firms in Nigeria; earnings quality management has a significant effect on
profit after tax of listed manufacturing firms in Nigeria; earnings quality
management has a significant effect on return on capital employed of listed
manufacturing firms in Nigeria. The study recommends that stakeholders,
especially managers and employees must endeavor to apply due diligence
especially in corporate financial reporting and other day-to-day organizational
activities which should never be detrimental to the real owners of the business
(the shareholders); Investors and their advisers should
understand the dynamics of earnings quality proxies as a guide in making
informed investment decisions and portfolio diversifications strategies
particularly in time of investment uncertainties; drafting a well-structured
framework of accounting regulation; appropriate and proper measure should put
in place for adequate evaluation, examination and scrutinisation of
manufacturing firms financial statement.
MICHAEL, U (2023). Effect Of Earnings Quality Management On The Financial Performance Of Listed Manufacturing Firms In Nigeria. Mouau.afribary.org: Retrieved Oct 31, 2024, from https://repository.mouau.edu.ng/work/view/effect-of-earnings-quality-management-on-the-financial-performance-of-listed-manufacturing-firms-in-nigeria-7-2
UNIVERSITY, MICHAEL. "Effect Of Earnings Quality Management On The Financial Performance Of Listed Manufacturing Firms In Nigeria" Mouau.afribary.org. Mouau.afribary.org, 04 Jul. 2023, https://repository.mouau.edu.ng/work/view/effect-of-earnings-quality-management-on-the-financial-performance-of-listed-manufacturing-firms-in-nigeria-7-2. Accessed 31 Oct. 2024.
UNIVERSITY, MICHAEL. "Effect Of Earnings Quality Management On The Financial Performance Of Listed Manufacturing Firms In Nigeria". Mouau.afribary.org, Mouau.afribary.org, 04 Jul. 2023. Web. 31 Oct. 2024. < https://repository.mouau.edu.ng/work/view/effect-of-earnings-quality-management-on-the-financial-performance-of-listed-manufacturing-firms-in-nigeria-7-2 >.
UNIVERSITY, MICHAEL. "Effect Of Earnings Quality Management On The Financial Performance Of Listed Manufacturing Firms In Nigeria" Mouau.afribary.org (2023). Accessed 31 Oct. 2024. https://repository.mouau.edu.ng/work/view/effect-of-earnings-quality-management-on-the-financial-performance-of-listed-manufacturing-firms-in-nigeria-7-2