Earnings Management Smoothing and Shareholders’ Wealth in Listed Manufacturing Firms in Nigeria

Authors

  • Agbaje, Wale Henry (PhD) AAUA, Akungba Akoko
  • Igbekoyi, Olusola Esther (PhD)  Adekunle Ajasin University, Akungba Akoko, Ondo State, Nigeria

Keywords:

Earnings Smoothing, Shareholders’ wealth, Manufacturing firms.

Abstract

The study examined earnings smoothing and shareholders’ wealth in listed manufacturing firms in Nigeria between year 2008 and 2018. Ex–post Facto research design was adopted for this study. A sample of twenty-one (21) listed manufacturing firms were selected out of sixty-seven (67) manufacturing firms listed on the Nigerian Stock Exchange. The data were analyzed using descriptive statistics and inferential statistics. The result revealed a positive significant relationship effect of Asset quality index (AQI) on shareholders’ wealth as the result showed a co-eff of 0.857 with p-values of 0.008 at 5% significant level and a negative effect of Depreciation index (DEPI) on shareholders’ wealth with a co-eff of -0.270 and a p value of 0.015. The study concluded that if the Nigerian manufacturing industry is to be made more effective and developed, earnings management have to be managed to cover all loopholes noted in the study and  ensure effective management of the indexes of earnings smoothing. The study recommended that earnings management (AQI and DEPI) should be paramount in the effective running of the manufacturing industry in Nigeria since effects of the explanatory variables have substantial effects in increasing market value added, either in short run or long run.  

 

 

Author Biography

Igbekoyi, Olusola Esther (PhD),  Adekunle Ajasin University, Akungba Akoko, Ondo State, Nigeria

 

 

Published

2021-11-02

How to Cite

Agbaje, W., & Igbekoyi, O. E. (2021). Earnings Management Smoothing and Shareholders’ Wealth in Listed Manufacturing Firms in Nigeria. International Scholars Journal of Arts and Social Science Research, 4(3), 406–418. Retrieved from https://www.theinterscholar.org/journals/index.php/isjassr/article/view/154

Issue

Section

Articles
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