Title: EFFECT OF FIRM ATTRIBUTES ON EARNINGS MANAGEMENT OF LISTED INSURANCE COMPANIES IN NIGERIA
Authors:
M.M Naburgi, Ph.D., A.A Musa, Ph.D. and Rafiu Adeshina Yinusa
Abstract:
This study examines the impact of firm attributes on earnings management among listed insurance companies in Nigeria. Specifically, it investigates the effects of firm growth, liquidity, profitability, and ownership concentration on earnings management practices. A longitudinal research design was employed, utilizing secondary data from the annual reports of 22 listed insurance firms over a ten-year period (2014–2023). Panel regression analysis was used to assess the relationships between these variables. The results indicate that firm growth and ownership concentration positively and significantly influence earnings management, while profitability has a negative and significant effect. However, liquidity does not show a significant impact. Based on these findings, the study recommends strengthening corporate governance to curb the influence of dominant shareholders on financial reporting. Additionally, the Securities and Exchange Commission (SEC) and Financial Reporting Council of Nigeria (FRCN) should enhance oversight of high-growth firms to prevent earnings manipulation.
Keywords: Earnings Management, Firm Growth, Liquidity, Profitability, Ownership Concentration.
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