WINDOW DRESSING PRACTICES AND THE FINANCIAL PERFORMANCE OF LISTED INDUSTRIAL GOODS COMPANIES IN NIGERIA

The study examined the effect of window dressing on financial performance in listed industrial goods firm in Nigeria. The specific objectives were to examine the effect of accrual-based window dressing practices, real activities–based and the financial statement based in listed industrial goods companies in Nigeria. The study adopted ex-post facto research design. The population of this study comprised all eleven (11) industrial goods firms listed on the Nigerian Exchange (NGX) Group as at 31st December 2024. By considering the entire population for the study census sampling was employed. Data were collected from audited financial statements of listed industrial goods companies in Nigeria. The data collected was analyzed using descriptive and inferential statistical techniques. From the analysis it was found that accrual-based window dressing, real activities–based window dressing and financial statement–based window dressing had negatively and significantly effect on financial performance as measured by return on equity. The findings of this study lead to the conclusion that window dressing practices constitute a significant determinant of reported and true financial performance among listed industrial goods companies in Nigeria. Based on this, the study therefore recommend that The Securities and Exchange Commission (SEC) of Nigeria and the Financial Reporting Council of Nigeria (FRCN) should intensify oversight of financial reporting practices among listed industrial goods companies. Boards of directors and audit committees of listed industrial goods firms should adopt more rigorous review processes for financial statements, with particular attention to material accrual adjustments, inventory levels, discretionary expense cuts, and working capital changes proximate to reporting dates.