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Shareholders Interest and Aggressive Earnings Management Among Listed Foods and Beverages Manufacturing Firms in Nigeria

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  • KUJORE Oluwatobi Abodunrin

    (Babcock University, Department of Accounting, Ilishan-Remo, Ogun State, Nigeria)

  • ADEGBIE Folajimi Festus

    (Babcock University, Department of Accounting, Ilishan-Remo, Ogun State, Nigeria)

Abstract

This study investigated aggressive earnings management and shareholders’ interest among listed food and beverage manufacturing firms in Nigeria with a focus on earnings yield, dividend yield, earnings per share, and dividend per share as independent variables while earnings management was the dependent variable. The study adopted expo-facto research design with a population of thirteen (13) manufacturing firms in the food and beverages sector. A sample size of seven (7) firms was arrived at using the criterion that the sampled firm must have made profit for at least four years out of the seven years’ scope that was considered. Data was gathered using annual reports and accounts of the sampled firms through secondary method of data collection. The data was analyzed using multiple regression technique through the application of Statistical Package for Social Sciences (SPSS) Version 23. The results/findings revealed that earnings yield and earnings per share had a significant effect on aggressive earnings management with p-values of 0.005 each while dividend yield and dividend per share had positive and insignificant effect on aggressive earnings management with p-values of 0.799 and 0.924 respectively. The study concluded that earnings yield and earnings per share play a prominent role on earnings management among listed food and beverage manufacturing firms in Nigeria. It was recommended amongst others that investors should be investing less in firms with high earnings yield and earnings per share among listed foods and beverages manufacturing firms in Nigeria because the firms engage in earnings management which leads to poor credibility of financial statements.

Suggested Citation

  • KUJORE Oluwatobi Abodunrin & ADEGBIE Folajimi Festus, 2023. "Shareholders Interest and Aggressive Earnings Management Among Listed Foods and Beverages Manufacturing Firms in Nigeria," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 7(2), pages 1237-1249, February.
    • Handle: RePEc:bcp:journl:v:7:y:2023:i:2:p:1237-1249
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    References listed on IDEAS

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    1. Hervé Stolowy & Gaétan Breton, 2004. "Accounts Manipulation: A Literature Review and Proposed Conceptual Framework," Review of Accounting and Finance, Emerald Group Publishing Limited, vol. 3(1), pages 5-92, January.
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