IDEAS home Printed from https://ideas.repec.org/a/eme/arjpps/v28y2015i2p172-194.html
   My bibliography  Save this article

Earnings management, funding and diversification strategies of banks in Africa

Author

Listed:
  • Mohammed Amidu
  • Ransome Kuipo

Abstract

Purpose - – This paper aims to investigate the implications of earnings management for funding and diversification strategy within the context of developing and emerging economies. Design/methodology/approach - – The authors raise two issues pertinent to bank earnings management: first, whether there is evidence of earnings management of banks in the selected African countries; and second, what must have accounted for the banks to engage in such practices? Findings - – The results show that almost all the 330 banks in the 29 African countries sampled are found to have engaged in some management of their earnings during the period 2002-2009. The authors also find evidence that bank activity mix and funding modes explain bank earnings quality. Overall results indicate that the sensitivity of earnings management to revenue diversification across interest income decreases, as bank market shares increases. Originality/value - – The authors investigate how earnings management is affected by banks intermediation strategies.

Suggested Citation

  • Mohammed Amidu & Ransome Kuipo, 2015. "Earnings management, funding and diversification strategies of banks in Africa," Accounting Research Journal, Emerald Group Publishing Limited, vol. 28(2), pages 172-194, September.
    • Handle: RePEc:eme:arjpps:v:28:y:2015:i:2:p:172-194
    DOI: 10.1108/ARJ-07-2013-0045
    as

    Download full text from publisher

    File URL: https://www.emerald.com/insight/content/doi/10.1108/ARJ-07-2013-0045/full/html?utm_source=repec&utm_medium=feed&utm_campaign=repec
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://www.emerald.com/insight/content/doi/10.1108/ARJ-07-2013-0045/full/pdf?utm_source=repec&utm_medium=feed&utm_campaign=repec
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://libkey.io/10.1108/ARJ-07-2013-0045?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ozili, Peterson K, 2019. "Bank Income Smoothing, Institutions and Corruption," MPRA Paper 92339, University Library of Munich, Germany.
    2. Yosra Mnif & Imen Slimi, 2023. "Former auditors on the audit committee and earnings management: Evidence from African banks," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 63(2), pages 2383-2420, June.
    3. Sarah Anobil Okyere & Vera Fiador & Emmanuel Sarpong‐Kumankoma, 2021. "Earnings management, capital structure, and the role of corporate governance: Evidence from sub‐Saharan Africa," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 42(6), pages 1525-1538, September.
    4. Ozili, Peterson K, 2019. "Bank Earnings Management using Commission and Fee Income: the Role of Investor Protection and Economic Fluctuation," MPRA Paper 101824, University Library of Munich, Germany.
    5. Ozili, Peterson K., 2019. "Bank income smoothing, institutions and corruption," Research in International Business and Finance, Elsevier, vol. 49(C), pages 82-99.

    More about this item

    Keywords

    Diversification strategy; Earnings management; Funding modes; G21; M41 N27;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting
    • N27 - Economic History - - Financial Markets and Institutions - - - Africa; Oceania

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eme:arjpps:v:28:y:2015:i:2:p:172-194. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Emerald Support (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.