EFFECT OF EARNINGS MANAGEMENT ON TIMELINESS OF FINANCIAL REPORTING OF QUOTED NON-FINANCIAL FIRMS

Abstract

The focus of the study is to examine the impact of earnings management on financial reporting timeliness in non-financial firms in Nigeria This study employed ex-post facto research design. The study utilized a sample size of 76 non-financial firms quoted on the Nigerian Exchange Group (NXG). Secondary data was used for this study. The data was retrieved from corporate annual reports of the sampled firms for the period 2011-2021 financial years. This study employs descriptive and inferential statistical methods such as the mean, standard deviation and regression analysis. The traditional diagnostics tests were conducted in this study to ensure that the regression estimates are free from any econometric problems. The study revealed that accrual based manipulation has a significant impact on timeliness of financial reporting but increases in accrual based manipulation do not necessarily increase the time taken to release financial reports and also Real earnings management manipulation has a significant effect on timeliness of financial reporting but increases in both productions based and sales based real earnings management manipulation does not increase the time taken to release financial reports. Hence, we conclude that accrual manipulation and real earnings management results in delay in financial reporting in quoted non-financial firms in Nigeria. The study therefore recommends that all the stakeholders interested in non-financial quoted firms should take special interest in earnings management and time of release of the company’s financial statement