COMPANY PROFITABILITY AND EARNINGS CONTROL: A LOOK AT COMPANIES LISTED ON THE NIGERIA EXCHANGE GROUP

Abstract

This research aims to analyze how company performance affects the veracity of reported earnings for Nigerian stock-market businesses. Earnings management in the sample firms was analyzed using the m-score model. Accounting metrics and average industry profits have been used to evaluate the company's success. The study's results clearly distinguish between the most critical factors that affect the earnings quality of businesses in Nigeria's industrial sector. This study also demonstrates the effects of financial firm size, profit before taxes, returns on assets (ROA), returns on capital employed (ROCE), depreciation business index (DEPI), and leverage index (LVGI) on the performance of Nigerian firms listed on the Nigerian stock market. This study also confirms previous findings that the sales general administration index is not significantly correlated with business success.