Earnings management occurs during which financial reports are prepared using judgment in order to mislead the stakeholders about the underlying economic performance of the company, or to influence contractual outcomes that are based on the reported earnings. This indicates that managements have incentives to manipulate the earnings in the purpose of maximizing the wealth of the company and/or the manager. This study employed the panel least squares while assuming fixed effects to test the effect of accrual-based earnings management on share prices of ten (10) sectors purposively sampled for twelve (12) years (2006 – 2017) and resulting in one hundred and fifteen (115) observations. The findings of DAA (Discretionary Adjustment Accrual) been positive and significant conforms with prior studies that distinguishes earnings management based on discretionary accruals. This suggests that discretionary accruals adjustment provides managers in Nigerian quoted firms the opportunities to manipulate earnings and hence share prices.
| Published in | International Journal of Finance and Banking Research (Volume 5, Issue 4) |
| DOI | 10.11648/j.ijfbr.20190504.15 |
| Page(s) | 105-113 |
| Creative Commons |
This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited. |
| Copyright |
Copyright © The Author(s), 2024. Published by Science Publishing Group |
Earnings Management, Share Price, Nigerian Firms, Accruals
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APA Style
Ubesie Madubuko Cyril, Ogbu Samuel, Mbah Chris Chukwuemeka. (2019). Effect of Accruals Earnings Management on Share Price of Quoted Nigerian Firms. International Journal of Finance and Banking Research, 5(4), 105-113. https://doi.org/10.11648/j.ijfbr.20190504.15
ACS Style
Ubesie Madubuko Cyril; Ogbu Samuel; Mbah Chris Chukwuemeka. Effect of Accruals Earnings Management on Share Price of Quoted Nigerian Firms. Int. J. Finance Bank. Res. 2019, 5(4), 105-113. doi: 10.11648/j.ijfbr.20190504.15
AMA Style
Ubesie Madubuko Cyril, Ogbu Samuel, Mbah Chris Chukwuemeka. Effect of Accruals Earnings Management on Share Price of Quoted Nigerian Firms. Int J Finance Bank Res. 2019;5(4):105-113. doi: 10.11648/j.ijfbr.20190504.15
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Download@article{10.11648/j.ijfbr.20190504.15,
author = {Ubesie Madubuko Cyril and Ogbu Samuel and Mbah Chris Chukwuemeka},
title = {Effect of Accruals Earnings Management on Share Price of Quoted Nigerian Firms},
journal = {International Journal of Finance and Banking Research},
volume = {5},
number = {4},
pages = {105-113},
doi = {10.11648/j.ijfbr.20190504.15},
url = {https://doi.org/10.11648/j.ijfbr.20190504.15},
eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijfbr.20190504.15},
abstract = {Earnings management occurs during which financial reports are prepared using judgment in order to mislead the stakeholders about the underlying economic performance of the company, or to influence contractual outcomes that are based on the reported earnings. This indicates that managements have incentives to manipulate the earnings in the purpose of maximizing the wealth of the company and/or the manager. This study employed the panel least squares while assuming fixed effects to test the effect of accrual-based earnings management on share prices of ten (10) sectors purposively sampled for twelve (12) years (2006 – 2017) and resulting in one hundred and fifteen (115) observations. The findings of DAA (Discretionary Adjustment Accrual) been positive and significant conforms with prior studies that distinguishes earnings management based on discretionary accruals. This suggests that discretionary accruals adjustment provides managers in Nigerian quoted firms the opportunities to manipulate earnings and hence share prices.},
year = {2019}
}
TY - JOUR T1 - Effect of Accruals Earnings Management on Share Price of Quoted Nigerian Firms AU - Ubesie Madubuko Cyril AU - Ogbu Samuel AU - Mbah Chris Chukwuemeka Y1 - 2019/09/02 PY - 2019 N1 - https://doi.org/10.11648/j.ijfbr.20190504.15 DO - 10.11648/j.ijfbr.20190504.15 T2 - International Journal of Finance and Banking Research JF - International Journal of Finance and Banking Research JO - International Journal of Finance and Banking Research SP - 105 EP - 113 PB - Science Publishing Group SN - 2472-2278 UR - https://doi.org/10.11648/j.ijfbr.20190504.15 AB - Earnings management occurs during which financial reports are prepared using judgment in order to mislead the stakeholders about the underlying economic performance of the company, or to influence contractual outcomes that are based on the reported earnings. This indicates that managements have incentives to manipulate the earnings in the purpose of maximizing the wealth of the company and/or the manager. This study employed the panel least squares while assuming fixed effects to test the effect of accrual-based earnings management on share prices of ten (10) sectors purposively sampled for twelve (12) years (2006 – 2017) and resulting in one hundred and fifteen (115) observations. The findings of DAA (Discretionary Adjustment Accrual) been positive and significant conforms with prior studies that distinguishes earnings management based on discretionary accruals. This suggests that discretionary accruals adjustment provides managers in Nigerian quoted firms the opportunities to manipulate earnings and hence share prices. VL - 5 IS - 4 ER -
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