FIRM GROWTH AND CORPORATE LIFE CYCLE DYNAMICS AS DETERMINANTS OF EARNINGS MANAGEMENT
Abstract
This study investigated the effects of firm profitability, revenue growth, and firm life cycle stages on earnings management among non-financial firms listed on the Nigerian Exchange Group (NGX). Drawing on a sample of forty-one manufacturing firms with data spanning 2013 to 2022, the research adopts an ex-post facto design, utilizing secondary data from published financial statements. Descriptive statistics, correlation analysis, and variance inflation factor (VIF) tests were conducted to examine data characteristics and multicollinearity among variables. Inferential analysis employed random effect regression models to test three hypotheses regarding the relationships between earnings management and the selected firm-specific factors. The results reveal that profitability, revenue growth, and firm life cycle stage each exhibit positive but statistically insignificant relationships with earnings management, indicating that these variables do not significantly drive managerial manipulation of financial statements in the Nigerian manufacturing sector. The study concludes that enhancing governance frameworks, strengthening internal audits, and fostering managerial accountability are critical to mitigating earnings management, irrespective of profitability, growth, or life cycle stage. Policymakers and regulators are encouraged to implement measures that monitor discretionary accruals and ensure transparency, providing a safeguard against manipulative financial reporting. The research contributes to the literature by empirically evaluating multiple firm-specific determinants of earnings management in the Nigerian context, offering practical implications for corporate governance and financial oversight.
This article is available as a PDF download
Published in AFRICAN JOURNAL OF ACCOUNTING, FINANCE & MARKETING
ISSN: 2805 - 4253
This article appears in our peer-reviewed academic journal
View JournalRelated Articles
Explore similar research in our collection
COST OF CAPITAL AND PROFITABILITY OF LISTED COMMERCIAL BANKS IN NIGERAIN EXCHANGE GROUP(NGX)
IGONIDERIGHA, ROSELINE Ph.D
Feb 13, 2026
The study investigated the effect of cost of capital (cost of debt and cost of equity) and profitabi...
View ArticleDEVELOPMENT FINANCE INSTITUTIONS AND PRIVATE SECTOR PROJECTS IN DEVELOPING COUNTRIES. A CASE STUDY OF NIGERIA
RAHJI OHIZE IBRAHIM
Feb 13, 2026
This paper analyses how the Development Finance Institutions have been effective in crowding in for...
View ArticleFIRM CAPITAL STRUCTURE AND FIRM FINANCIAL PERFORMANCE: EMPIRICAL EVIDENCE FROM CONSUMER GOODS INDUSTRIES
AUDU OMOAKELE GABRIEL Ph.D, CHUKWUMA ONYEKACHI CHIME
Feb 6, 2026
This Study investigate the association between firm capital structure and performance of some select...
View Article