Effect of accrual-based earnings management on the firm value of listed industrial goods companies in Nigeria

Authors

  • Msurshima Josephine Orban Rev. Fr. Moses Orshio University, Makurdi, Benue State
  • Luper Iorpev
  • Kwaghfan Aondoakaa

DOI:

https://doi.org/10.33003/fujafr-2026.v4i1.329.239-249

Keywords:

Accrual-based earnings management, Firm value, Industrial goods companies, Nigeria

Abstract

Purpose: The study investigated the effect of accrual-based earnings management on the firm value of listed industrial goods companies in Nigeria.

Methodology: The study employed an ex-post facto research design, and secondary data were obtained from a sample of 12 listed industrial goods companies between 2012 and 2023. The descriptive statistics and regression techniques were used for data analysis with the aid of STATA version 16.0.

Results and conclusion: The study found that accrual-based earnings management significantly reduced the firm value measured by Tobin’s Q. The study concluded that the effect of accrual-based earnings management on firm value in Nigeria is firm-specific, and the negative relationship views it as value-destroying.

Implication of findings: The study recommended that regulatory authorities should toughen supervision and enforcement of financial reporting standards, while managers of companies, especially the listed industrial goods companies, should heighten corporate governance practices, mostly audit quality and board oversight, to mitigate earnings manipulation. Furthermore, investors should place greater emphasis on the quality of earnings rather than reported profits when making investment decisions.

Author Biography

  • Luper Iorpev

    Associate Professor,

    Accounting Department, Rev. Fr. Moses Orshio University, Makurdi, Benue State.

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Published

31-03-2026

Issue

Vol. 4 No. 1 (2026): March 31, 2026

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Articles

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Copyright (c) 2026 Msurshima Josephine Orban, Luper Iorpev, Kwaghfan Aondoakaa

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How to Cite

Orban, M. J., Iorpev, L., & Aondoakaa, K. (2026). Effect of accrual-based earnings management on the firm value of listed industrial goods companies in Nigeria. FUDMA Journal of Accounting and Finance Research [FUJAFR], 4(1), 239-249. https://doi.org/10.33003/fujafr-2026.v4i1.329.239-249

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