Management Performance and Discretionary Accrual Measures in Nigeria

• Post by: airjournal
• September 7, 2022
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The aim of this research work is to examine management performance and discretionary accrual measures in Nigeria. An expo factor research design was used to analyze Data from quoted companies that are listed in the Nigerian stock exchange within the period of 2017-2021 and a total of 5 manufacturing companies were adopted as samples. Profitability, liquidity and firm’s growth were the variables used to measure firm’s performance as it relates to earnings management. The findings of this study demonstrate that profitability and liquidity have a positive relationship with discretionary accrual measure. However, company growth and discretionary accrual measure have a positive but no statistically significant association. Therefore, this study recommends that regulatory authorities should implement compliance with Accounting Standards, particularly: International Financial Reporting Standards (IFRS) in accounting disclosure such that financial information manipulation undertaken by firms to improve profit are eliminated.

Keywords: Discretionary Accrual measures, Earnings Management, Management Performance

Authorship: Eze, R. C. and Egiyi, M. A. PhD | FULL PDF