EARNING MANAGEMENT, FIRM SIZE AND INSTITUTIONAL OWNERSHIP: EVIDENCE FROM NIGERIAN MANUFACTURING FIRMS

Abstract

This paper is an empirical investigation of the role of firm size and institutional ownership on earnings management: Evidence from Nigerian quoted Firms for the period of 2000-2021. The quoted firms used in the study are thirty (30) in number out of which a sample of Twenty (22) were used for the study. Firm attributes as the independent variable was proxy with firm size, leverage, Institutional ownership, profitability, liquidity and firm growth), While the residuals from the modified Jones model by Dechow et ‘al (1995) was used to proxy earnings quality. The study adopts multiple panel regression techniques and data were collected from secondary source through the annual reports and accounts of the firms. The findings reveal that leverage, liquidity and firm growth has a significant positive impact on earnings quality while firm size, institutional ownership and profitability have a significant but negative influence on earnings quality of listed oil and gas companies in Nigeria. The study contribute to knowledge by including external firms attribute and cover all quoted firms in Nigerian stock exchange. It is recommended among others that specific sector and selected companies may be used for better result, also interest rate is need to be considerably low and there is need for firms to increase their liquidity asset and turnover as it has been found empirically to enhance the quality of the firms reported earnings. Keywords: Earning, Management, Firm Size, Ownership.