Accounting Figures and Financial Performance of Listed Non-Financial Businesses on the Nigerian Stock Exchange
Keywords:
Accounting Data Manipulation, financial performance, earnings management, and return on assets.Abstract
This paper focussed on the analysis mis-presentations of accounting data and the financial performance of Nigerian listed corporations from 2007 to 2023. This study identified 105 (One hundred and five) businesses which was the entire population of the listed non-financial firms in Nigeria from the Stock Exchange. The study analysis was conducted statistically and based on secondary data acquired from various businesses' annual reports. The nature of the link between the independent and dependent variables was determined using descriptive statistics and correlation analysis. Given the hypothesis developed for this study, the model estimation approach used was a panel regression analysis.
The research demonstrated that certain tampering strategies, such as inaccurate asset valuation and timing of asset transactions, had a beneficial influence on return on assets, justifying the immoral behaviour. Other tactics, such as revenue fabrication and liability understatement, were seen to have a detrimental influence on return on assets. The report proposes, among other things, that investors hire professional financial analysts to examine the financial statements of companies in which they intend to invest.