Top-Level Executives' Knowledge and Accrual-Based Earnings Management

Egiyi, Modesta Amaka (2022) Top-Level Executives' Knowledge and Accrual-Based Earnings Management. Annals of Management Studies, 9 (1). pp. 1-10. ISSN 2754-4176

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The study empirically investigated the impact of top-level executives’ knowledge on accrual- based earnings management in 30 companies listed on the Nigerian stock exchange with a panel data set spanning the years 2010 to 2020. This study uses the Hribar and Collins (2002) model and the Kothari et al. (2005) model to calculate discretionary accruals. Consistent with the agency theory, the result reveals a significant negative relationship between the top-level executives’ level of education and prior experience with the practice of earnings management for Nigerian firms. The empirical results show that increased education level and greater prior experience limits earning manipulating activities of top-level executives. Policy implications of the findings are discussed. Thus, the study recommends that companies in Nigerian firms should hire highly educated executives and executives with substantial prior experience because they mean fewer earnings management practices

Item Type: Article
Subjects: H Social Sciences > HF Commerce > HF5601 Accounting
Divisions: Faculty of Arts > Faculty of Law > Faculty of Management and Social Sciences > Faculty of Education > Faculty of Natural and Applied Sciences
Faculty of Management and Social Sciences
Depositing User: mrs chioma hannah
Date Deposited: 22 Aug 2022 11:14
Last Modified: 22 Aug 2022 11:14

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