AUDIT QUALITY, TENURE AND REAL EARNINGS MANAGEMENT OF LISTED NONFINANCIAL FIRMS IN NIGERIA
Journal Title: Gusau Journal of Accounting and Finance - Year 2022, Vol 3, Issue 1
Abstract
Earnings management is volatile due to its asymmetric nature by managers of non-financial firms. Yet, very few studies have examined the issues that cause this manipulation, especially in non-financial firms. This study, therefore, examines the relationship between audit big4 and audit tenure on REM of 76 listed non-financial firms in Nigeria using a 10-year data set (2010-2019). The MachammeRatios Database is used for data extraction. The results indicate that audit big4 shows significant positive effects on real earnings management. However, audit tenure shows in significant adverse effects on real earnings management. The paper, therefore, concludes that Audit Big4 is very important in mitigating real earnings management in the non-financial companies in Nigeria. The empirical findings are essential for non-financial firms' policy enhancement and further research and contributions to the body of knowledge. Managers should improve audit tenure while enhancing audit big4 independent to reduce incidence earnings management.
Authors and Affiliations
Ahmed Mohammed, Ademu Yahaya, Musa Zakariya
Keywords
Related Articles
- EP ID EP709123
- DOI -
- Views 45
- Downloads 0
DETERMINANTS OF SOCIAL AND ENVIRONMENTAL ACCOUNTABILITY OF NIGERIAN FIRMS
Corporate organisations are following legal and illegal means to avoid and evade payment of corporate taxes considered as corporate burdens that erode profits as the main motive of businesses. Conversely, activities of...
FIRM ATTRIBUTES AND EXECUTIVE COMPENSATION OF CONGLOMERATES IN NIGERIA
Executive compensation, particularly in the western countries has over the years received intense media and research interest particularly from the occurrence of large corporate failures. This brought to the fore, the...
FIRM-SPECIFIC CHARACTERISTCS AND FINANCIAL PERFORMANCE OF LISTED AGRICULTURAL COMPANIES IN NIGERIA
The contribution of listed agricultural firms to market development and economic growth has been consistently low in recent years. This could be traced partly to low profitability of agricultural firms in the country wh...
CAPITAL STRUCTURE AND PROFITABILITY OF LISTED DEPOSIT MONEY BANKS IN NIGERIA
Bank management and providers of funds are of the view that capital structure is of supreme importance, the use of a wrong mix of capital structure could seriously affect the performance and subsistence of such a bank....
LIQUIDITY AND CAPITAL STRUCTURE OF LISTED OIL AND GAS COMPANIES IN NIGERIA
This paper examined the effect of liquidity on the capital structure of listed oil and gas companies in Nigeria for the period 2006-2016. The population of the study is ten (10) oil and gas companies listed on the Nigeri...