EARNINGS MANAGEMENT AND SUSTAINABILITY REPORTING OF LISTED NON-FINANCIAL FIRMS IN NIGERIA: DOES EARNINGS MANAGEMENT DRIVE THIS REPORT

EARNINGS MANAGEMENT AND
SUSTAINABILITY
REPORTING OF LISTED
NONFINANCIAL FIRMS IN
NIGERIA:
DOES EARNINGS MANAGEMENT
DRIVE THIS REPORT
Okika Nkiru Philomena
Obafemi Awolowo University, Ile-Ife.
philuxnkiru@gmail.com
&
Uyanna Joel Ubaka
PhD Student: Ahmadu Bello University,
Zaria
uyannajoel@gmail.com
&
Ibrahim Mallam Fali
Department of Accounting, University of
Calabar, Calabar, Cross River State,
Nigeria.
faliibrahim7@gmail.com
ABSTRACT
There has been the growing demand by
significant stakeholders for trustworthy
information on the economic, social,
environmental, and governance activities
of firms although, management who are
responsible
for
preparing
this
sustainability reporting has faulted for
selfinterest acts and opportunities
behaviors because of this, this study
evaluates the earnings management and
sustainability reporting of listed non-
financial firms in Nigeria from 2011 to

  1. The study sample size comprised of
    24 listed nonfinancial firms, and theBook of Abstract
    sustainability reporting was measured
    using content analyses in the annual
    financial report and accounts. The Global
    Reporting Initiatives
    (G4) guidelines were used for sustainability
    reporting, while the earnings management
    variable was derived from the Modified
    Jones Model by Dechow, Sloan & Sweeny
    (1995) for discretionary accrual. A
    correlational design was used, and
    secondary data was obtained from the
    company's annual financial statements
    reports. The results from the fixed effect
    regression analysis proved that the extent of
    earnings management drives the level of
    sustainability reporting positively. The study
    concludes that firms that manage their
    earnings are likely to report more on
    sustainability.
    Keywords: Sustainability Reporting, Earnings
    Management, Global Reporting
    Initiatives, Modified Jones Model

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