FIRM’S CHARACTERISTICS AND EARNINGS MANAGEMENT: EVIDENCE FROM LISTED PHARMACEUTICAL COMPANIES IN NIGERIA

The global financial crises that have shaken the global financial industry between 2007-2008 have given birth to several problems and worries about the quality of financial reporting worldwide. The manipulation of earnings has the effect of reducing the quality of reported financial data, which dis...

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Main Authors: Muhammed BELLO, Leye Sherifdeen OYEDIRAN, Emmanuel Yinka ONIFADE
Format: Article
Language:English
Published: Kwara State University, Malete Nigeria 2023-12-01
Series:Malete Journal of Accounting and Finance
Subjects:
Online Access:https://majaf.com.ng/index.php/majaf/article/view/120
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author Muhammed BELLO
Leye Sherifdeen OYEDIRAN
Emmanuel Yinka ONIFADE
author_facet Muhammed BELLO
Leye Sherifdeen OYEDIRAN
Emmanuel Yinka ONIFADE
author_sort Muhammed BELLO
collection DOAJ
description The global financial crises that have shaken the global financial industry between 2007-2008 have given birth to several problems and worries about the quality of financial reporting worldwide. The manipulation of earnings has the effect of reducing the quality of reported financial data, which distorts the relationship between reported earnings and stock returns and makes it more difficult to allocate resources effectively. Thus, the purpose of this study is to examine how firm characteristics affect earnings management in the listed pharmaceutical sector of Nigeria. Using an ex-post facto study design, data was collected from yearly reports of specific pharmaceutical sectors in Nigeria from 2012 to 2021. The population of this study consists of all listed pharmaceutical companies on the floor of the Nigeria Stock Exchange as at 31st December, 2021. There are eleven (11) listed pharmaceutical companies in Nigeria. Due to unavailability of data five (5) companies are used for the sample size of this study. Multiple regression analysis was used to assess the data, and the findings at showed 5% level of significant that, board independence and audit quality have a major influence on the earnings management of the pharmaceutical industry in Nigeria. The results show that firm characteristics in Nigeria's listed pharmaceutical sectors significantly influence earnings management. This study concluded that characteristics of the firms had a major impact on the management of earnings for the listed pharmaceutical industries in Nigeria. The study recommends that investors in listed pharmaceutical companies in Nigeria should always be on the lookout for the potential for more real activity earnings management before arriving at their investment decisions.
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institution Kabale University
issn 2735-9603
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publisher Kwara State University, Malete Nigeria
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spelling doaj-art-80fd86cb2ada4dc186d42ef45cb108d12025-02-10T23:06:28ZengKwara State University, Malete NigeriaMalete Journal of Accounting and Finance2735-96032023-12-0141FIRM’S CHARACTERISTICS AND EARNINGS MANAGEMENT: EVIDENCE FROM LISTED PHARMACEUTICAL COMPANIES IN NIGERIAMuhammed BELLO0Leye Sherifdeen OYEDIRAN1Emmanuel Yinka ONIFADE2Federal Polytechnic Offa, Kwara StateFederal Polytechnic Offa, Kwara StateFederal Polytechnic Offa, Kwara State The global financial crises that have shaken the global financial industry between 2007-2008 have given birth to several problems and worries about the quality of financial reporting worldwide. The manipulation of earnings has the effect of reducing the quality of reported financial data, which distorts the relationship between reported earnings and stock returns and makes it more difficult to allocate resources effectively. Thus, the purpose of this study is to examine how firm characteristics affect earnings management in the listed pharmaceutical sector of Nigeria. Using an ex-post facto study design, data was collected from yearly reports of specific pharmaceutical sectors in Nigeria from 2012 to 2021. The population of this study consists of all listed pharmaceutical companies on the floor of the Nigeria Stock Exchange as at 31st December, 2021. There are eleven (11) listed pharmaceutical companies in Nigeria. Due to unavailability of data five (5) companies are used for the sample size of this study. Multiple regression analysis was used to assess the data, and the findings at showed 5% level of significant that, board independence and audit quality have a major influence on the earnings management of the pharmaceutical industry in Nigeria. The results show that firm characteristics in Nigeria's listed pharmaceutical sectors significantly influence earnings management. This study concluded that characteristics of the firms had a major impact on the management of earnings for the listed pharmaceutical industries in Nigeria. The study recommends that investors in listed pharmaceutical companies in Nigeria should always be on the lookout for the potential for more real activity earnings management before arriving at their investment decisions. https://majaf.com.ng/index.php/majaf/article/view/120Firms’ characteristicsearnings managementmanufacturing industries
spellingShingle Muhammed BELLO
Leye Sherifdeen OYEDIRAN
Emmanuel Yinka ONIFADE
FIRM’S CHARACTERISTICS AND EARNINGS MANAGEMENT: EVIDENCE FROM LISTED PHARMACEUTICAL COMPANIES IN NIGERIA
Malete Journal of Accounting and Finance
Firms’ characteristics
earnings management
manufacturing industries
title FIRM’S CHARACTERISTICS AND EARNINGS MANAGEMENT: EVIDENCE FROM LISTED PHARMACEUTICAL COMPANIES IN NIGERIA
title_full FIRM’S CHARACTERISTICS AND EARNINGS MANAGEMENT: EVIDENCE FROM LISTED PHARMACEUTICAL COMPANIES IN NIGERIA
title_fullStr FIRM’S CHARACTERISTICS AND EARNINGS MANAGEMENT: EVIDENCE FROM LISTED PHARMACEUTICAL COMPANIES IN NIGERIA
title_full_unstemmed FIRM’S CHARACTERISTICS AND EARNINGS MANAGEMENT: EVIDENCE FROM LISTED PHARMACEUTICAL COMPANIES IN NIGERIA
title_short FIRM’S CHARACTERISTICS AND EARNINGS MANAGEMENT: EVIDENCE FROM LISTED PHARMACEUTICAL COMPANIES IN NIGERIA
title_sort firm s characteristics and earnings management evidence from listed pharmaceutical companies in nigeria
topic Firms’ characteristics
earnings management
manufacturing industries
url https://majaf.com.ng/index.php/majaf/article/view/120
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AT leyesherifdeenoyediran firmscharacteristicsandearningsmanagementevidencefromlistedpharmaceuticalcompaniesinnigeria
AT emmanuelyinkaonifade firmscharacteristicsandearningsmanagementevidencefromlistedpharmaceuticalcompaniesinnigeria