The Effect of Earnings Management on Earnings and Book-Value per Share: A Study of Selected Quoted Companies in Nigeria

Egbunike, Francis Chinedu, Udeh, Francis


Purpose:The main objective of this study is to examine the effect of earnings management on EPS and BVPS. The issue of earnings management is becoming quite rampant in organisations, following notable failures of companies as Enron, WorldCom, Tyco, etc. and moreover, the Cadbury, African Petroleum, and failed Banks in Nigeria. Design/Methodology:          The study was descriptive in nature and made use of ex-post facto research design. The population of the study was drawn from companies quoted under the conglomerates section of the Nigerian Stock Exchange (NSE) as shown in the Stock Exchange Factbook of 2013. Earnings Management was estimated using Jones (1991) Model. Our dependent variables were Earnings Per Share (EPS) and Book Value Per Share (BVPS). Findings:The results show that for firms with high discretionary accruals, earnings management positively affects earnings per share; and, book value per share of the firms.  Recommendations:Based on this the study recommends that the establishment and implementation of policies and practices that can curtail earnings management in Nigerians firms; and, the safeguard of investor return through the adoption and use of International Financial Reporting Standards in other sectors.

Full Text: PDF
Download the IISTE publication guideline!

To list your conference here. Please contact the administrator of this platform.

Paper submission email:

ISSN (Paper)2222-1697 ISSN (Online)2222-2847

Please add our address "" into your email contact list.

This journal follows ISO 9001 management standard and licensed under a Creative Commons Attribution 3.0 License.

Copyright ©