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Ifrs Adoption And Earnings Management Practices: Evidence From Nigerian Listed Consumer Goods Companies

Author

Listed:
  • Temitope Esther OYENEYE

    (Department of Accounting, Anchor University Lagos)

  • Mathew Idowu ABIMBOYE

    (Nigerian Institute of Public Relations)

  • Foluke Rachael ODUWOLE

    (Federal Polytechnic Ilaro)

  • Uwalomwa UWUIGBE

    (Department of Accounting, University of Nizwa, Sultanate of Oman, & Directorate of Research Development Walter Sisulu University South Africa)

Abstract

The study looked at earnings management practices in Nigerian consumer goods firms between pre and post-adoption of IFRS and earnings management in Nigeria. It involved twenty-one Nigerian firms in the Nigeria Exchange Group, with nine being sampled due to data availability. The Modified Jones Model, a well-known profits management model created by Dechow, Sloan, and Sweeney in 1995, was used. This research examined how IFRS has affected the way companies in Nigeria control their earnings from 2012 to 2022. The study examined earnings management practices in Nigerian consumer goods companies using an ex-post facto research design and non-parametric tests. Results showed no significant change in earnings management practices due to the adoption of IFRS.

Suggested Citation

  • Temitope Esther OYENEYE & Mathew Idowu ABIMBOYE & Foluke Rachael ODUWOLE & Uwalomwa UWUIGBE, 2023. "Ifrs Adoption And Earnings Management Practices: Evidence From Nigerian Listed Consumer Goods Companies," Business & Management Compass, University of Economics Varna, issue 4, pages 286-297.
    • Handle: RePEc:vrn:journl:y:2023:i:4:p:286-297
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Earnings Management; discretionary accruals; IFRS adoption; consumer goods firms; Nigeria;
    All these keywords.

    JEL classification:

    • M4 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting
    • M48 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Government Policy and Regulation

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