The Impact Of Earnings Manipulation On Profitability Of Selected Deposit Money Banks In Nigeria
ABSTRACT
This study examined the impact of earnings manipulation on profitability of selected deposit money banks in Nigeria. Specifically, this study examined the impact of loans loss provision, size of total assets and firm age on return on assets of selected quoted deposit money banks in Nigeria, using cross sectional data from 2019 to 2023. The research design that this study adopted is ex-post facto research design. The population of this study comprised five (5) quoted deposit money banks in Nigeria with international authorization, hence it served as the sample of the study. Therefore, the deposit money banks under study are: Access bank Plc, Fidelity Bank, Sterling Bank, United bank for Africa Plc and Zenith Bank. Data were collected from the annual reports and accounts while the study employed multiple regressions using pooled OLS regression, particularly Stata 11.1. findings from this study showed that there is a negative relationship between earnings management and financial performance of selected deposit money banks in Nigeria. Thus, it was recommended that the Financial Reporting Council of Nigeria (FRCN) should be empowered to draft a well-structured framework of accounting regulation, accept, review and investigate financial statements of all DMBs quoted on the NSE to ensure compliance with GAAP, IFRS, CAMA and other financial reporting Act.