The Effect Of Firms Characteristics On Real Earnings Management In The Listed Industrial Goods Firms In Nigeria

📄 Project Abstract

Earnings management has been a debatable topic to researchers, regulators, standard setters, and investors in the 21st century. It raised a great concern among the stakeholders because of some accounting practices that threaten the quality of corporate financial reporting and erode public confidence in the reported earnings. Managers have a tendency to avoid the release of bad earnings news at times of earnings announcements and as such managers can manipulate earnings through discretionary accounting choices (accrual-based earnings management) or by structuring real transactions and/or changing their timing (real earnings management). A vast financial reporting literature examined accrual-based earnings management with little attention to real earnings management. This study examined the determinants of real earnings management through real activities in the listed industrial goods firms in Nigeria. The study covers a sample of 10 industrial goods firms for a period of 7 years (2009-2...