EARNINGS MANAGEMENT AND QUALITY OF FINANCIAL REPORTING OF LISTED CONSTRUCTION COMPANIES IN NIGERIA

Abstract

The study examined earnings management and quality of financial reporting of listed construction companies in Nigeria. The objectives of the study among others are; to examined the relationship between accrual earnings and faithful representation of financial reporting of listed construction companies in Nigeria. And to evaluate the relationship between earnings persistence and faithful representation of financial reporting of listed construction companies in Nigeria. The study employed expo facto research design. The population of the study was the nine (9) listed construction companies in the Nigerian Stock Exchange during the period 2015-2021 (7) years. While the Sample size is 6. The study employed secondary data. The formulated research questions were analyzed with descriptive statistics. The hypotheses were tested using the multiple regression analysis with the aid of E-view (10). The findings of the study were that; there is positive and significant relationship between accrual earnings and faithful representation of construction companies in Nigeria. Meanwhile, there is positive but insignificant relationship between earnings persistence and faithful representation of listed construction companies in Nigeria. The recommended that construction companies in Nigeria accruals earnings is positive and significantly related. Thus, management should maintain this level of accruals earnings management. The construction sector should monitor the compliance with the provisions of the Nigerian code of corporate governance by companies will help strengthen faithful representation of financial reports.