Browsing by Author "Abdulraheem Olayiwola Kadir"

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    BOARD CHARACTERISTICS AND REAL EARNINGS MANAGEMENT AMONG LISTED NON-FINANCIAL FIRMS IN NIGERIA
    (Malete Journal of Accounting and Finance, 2022-12-23) Abdulraheem Olayiwola Kadir
    High expectations for earnings are put on companies, yet earnings management distorts how well those companies perform. Hence, this study examined the impact of board characteristics on real earnings management among listed non-financial companies in Nigeria. The study used a sample of 72 listed non-financial companies in Nigeria, covering the period of 2008-2020 on an unbalanced basis. The study was conducted over four (4) samples, vis-à-vis, the pre- and post-review of code of corporate governance and pre- and post-adoption of IFRS. The study employed the generalized method of moment (GMM) to estimate its empirical models. The findings from the estimation exercise revealed that board size reduces abnormal cash flows and abnormal production costs real earnings management after the review of code of corporate governance and adoption of IFRS but CEO duality promote real earnings management. Board independence was also found to reduce real earnings management while the number of meetings held by the board is ineffective in reduce earnings management. The study concluded that board characteristics are vital corporate governance mechanisms for reducing earnings management in Nigeria. It therefore recommended that an optimal size of board members as well as their independence should be emphasized for effective reduction in earnings management.
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    Board Membership, Political Connection and Audit Pricing: A meta-Analysis from Nigeria
    (College of Management Sciences, AL-Hikmah University, Ilorin, Nigeria, 2015-06-29) Tijani, Oladipupo Muhrtala; Abdulraheem Olayiwola Kadir
    This paper investigates how personal ties of politically connected boards affect auditors' assessments of audit risk as reflected in audit fees in Nigeria. The study sought information on board of directors from companies' portable document format (PDF) annual reports and accounts, Nigerian Securities and Exchange Commission (NSE) and Nigerian Stock Exchange (NSE) filings from a comprehensive data set of 1893 firm–year observations obtained from 116 companies across 24 sectors between 2001 and 2009. Our finding suggests that auditors charge higher fees to politically connected firms compared to others. We also find that this incremental effect of a firm's board political connections on audit fees is stronger among firms with weaker corporate governance, and more complicated operating structures. This finding is an indication that auditors perceive politically connected firms as riskier. Accordingly, they exercise greater effort and charge higher fees to these firms. Our evidence is sturdy to a battery of econometric endogeneity remedies and to exogenous events such as presidential and mid-term elections and the intense financial crisis of 2008–2009. Our findings is robust in the presence of political influence, including campaign contributions and lobbying expenditures affecting auditors' perceived business risk in politically connected boards and the implications for audit pricing.
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    CORPORATE ESG ACTIVITIES AND FINANCIAL REPORTING QUALITY: EVIDENCE FROM LISTED NON-FINANCIAL FIRMS IN NIGERIA
    (MALETE JOURNAL OF ACCOUNTING AND FINANCE, 2025-09-21) Abdulraheem Olayiwola Kadir
    Financial reporting in Nigeria continues to face challenges such as earnings manipulation, inconsistent disclosures, and weak comparability despite ongoing regulatory reforms. At the same time, global and local stakeholders increasingly demand Environmental, Social, and Governance (ESG) disclosures as part of transparent and credible corporate reporting. This study was undertaken to evaluate how environmental sustainability practices, corporate governance mechanisms, and social responsibility initiatives influence the financial reporting quality (FRQ) of listed non-financial firms in Nigeria. An ex-post facto design was employed, using secondary data extracted from annual reports and sustainability disclosures of 84 firms selected using a multistage sampling technique from 106 non-financial companies listed on the Nigerian Exchange Group between 2018 and 2024. Data were analyzed using panel regression models with appropriate robustness tests. The findings revealed that environmental sustainability, corporate governance, and social responsibility each exert significant positive effects on FRQ, while firm size strengthens these relationships. The study concludes that ESG practices, when genuinely implemented, enhance the credibility, transparency, and comparability of financial reports. It recommends the adoption of standardized ESG disclosure frameworks, stricter enforcement of governance codes, and capacity-building support for smaller firms to improve Nigeria’s financial reporting environment
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    DO AUDIT COMMITTEES CONSTRAIN EARNINGS MANAGEMENT? EVIDENCE FROM ACCRUAL-BASED AND REAL ACTIVITIES MANIPULATION IN NIGERIA
    (UMM Journal of Accounting and Financial Management, 2025-07-31) Abdulraheem Olayiwola Kadir
    This study examines whether audit committee characteristics effectively constrain earnings management in an emerging market context, Department of Accounting and Finance, Faculty of Management and Social Sciences, KwaraState University, Maletedistinguishing between accrual-based earnings management and real earnings management through production and cash flowchannels. Using a panel of Nigerian listed non-financial firms over the period 2008–2019, the study adopts a dynamic panel estimation framework to address persistence and endogeneity concerns inherent in corporate governance research. Earnings management is measured using established proxies for discretionary accruals and real activities manipulation, while audit committee effectiveness is captured through measures of independence, size, expertise, and meeting frequency. The results reveal a clear asymmetry in governance effectiveness. Audit committee attributes are significantly associated with lower accrual-based earnings management, consistent with their role in monitoringfinancial reporting and accounting discretion. In contrast, audit committee characteristics exhibit weak and inconsistent associations with real earnings management, particularly with respect to abnormal production costs and abnormal operating cash flows. These findings suggest that while audit committees are effective in constraining accounting-based manipulation, they are considerably less effective in limiting operational forms of earnings management that are embedded in real business decisions. The evidence suggests that governance reforms and enhanced reporting standards may reduce accrual manipulation but do not eliminate earnings management, instead allowing a shift toward manipulation of real activities. The findings carry important implications for regulators, auditors, and investors, highlighting the need for governance mechanisms that extend beyond financial reporting oversight to address operational sources of earnings manipulation.
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    Earnings Management Practices and Board Characteristics among Listed Firms in Nigeria
    (Department of Accounting, Faculty of Management Sciences, University of Ilorin, 2019-12-22) Abdulraheem Olayiwola Kadir; M. L. Nassar
    In response to the global trend and the reported cases of earnings management, Security and Exchange Commission (SEC) in Nigeria issued a new code of corporate governance in 2011, and subsequently, in 2018. However, earnings management practices are still being reported in many firms of some of the sub-sectors of the Nigerian Stock Exchange. It is on this basis that this study is conducted to examine: the code of corporate governance review influence on the impact of board characteristics on accrual-based earnings management; the role of IFRS adoption on the impact of board characteristics on accrual-based earnings management. The study employed a panel of 87 firms over a period of 2008 to 2015. Descriptive tools of summary statistics (the Mean and the standard deviation) and inferential tools of panel fixed and random effects models were employed to achieve the study objectives. The findings of this study revealed that accrual-based earnings management was practiced more after the code of corporate governance review of 2011 as well as after IFRS adoption, even though, the review has helped board characteristics reduce earnings management while IFRS adoption has contributed little to the success of board characteristics in reducing earnings management. The study recommends that the minimum number of independent directors should be increased from just one to a higher number. Also the number of board meetings and audit committee meetings should be increased from average of four per annum to a higher number.
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    EARNINGS QUALITY AND SUSTAINABILITY OF LISTED NON-FINANCIAL FIRMS IN NIGERIA
    (Fuoye Journal of Accounting and Management, 2025-12-20) Abdulraheem Olayiwola Kadir
    Despite growing awareness that sustainability drives long-term economic and social development, the sustainability of Nigerian firms seems to be undermined by low-quality earnings arising from managerial opportunistic discretion, accrual manipulation, and income smoothing. Thus, this study examines the effect of earnings quality on the sustainability of listed non-financial firms in Nigeria. An ex post facto research design was employed, using secondary data which were sourced from the annual reports of sampled non-financial firms listed on NGX and a multiple regression analysis was conducted after the descriptive and preliminary analyses. The results revealed that all four earnings quality dimensions significantly and positively affect sustainability performance: accrual quality (β = 0.212, p < 0.001), earnings persistence (β = 0.168, p < 0.05), earnings prediction (β = 0.121, p < 0.01), and earnings smoothness (β = 0.093, p < 0.05). The study concludes that accrual quality, consistent earnings pattern, strong earnings predictability and balanced earnings smoothness are vital determinants of sustainability performance. It is therefore recommended that rigorous earnings-quality mechanisms should be institutionalised to reinforce sustainable performance.
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    SECTORAL PATTERNS OF ACCRUAL-BASED AND REAL EARNINGS MANAGEMENT IN NIGERIA’S NON-FINANCIAL FIRMS
    (JOURNAL OF GLOBAL ACCOUNTING, 2025-12-31) Abdulraheem Olayiwola Kadir
    This study examined sectoral differences in earnings management among non-financial firms in Nigeria, with focus on distinguishing between accrual-based earnings management and real earnings management through production and cash-flow channels. Using a balanced panel of listed non-financial firms, the study applied established earnings management proxies and employs descriptive statistics, panel analysis of variance (ANOVA), Bonferroni pairwise comparisons, and variance homogeneity diagnostics to identify sector-specific patterns. The results revealed pronounced sectoral heterogeneity. Accrual-based earnings management exhibits significant sectoral differences, with evidence of both income-decreasing and income-increasing accrual adjustments, depending on industry characteristics. In contrast, real earnings management is highly uneven and concentrated in specific sectors. In particular, the Health Care and Oil & Gas sectors exhibited consistently higher and more volatile real earnings management, driven largely by abnormal cash-flow manipulation. And in the case of Oil & Gas, abnormal production costs. Conglomerates and ICT firms, by contrast, displayed relatively low and stable levels of real earnings management. Pairwise correlations further indicated that accrual-based earnings management operates largely independently of real earnings management, while aggregate real earnings management is strongly driven by abnormal cash-flow activities. Overall, the findings suggest that while accounting standards and governance reforms may have constrained accrual manipulation, they have been less effective in limiting real activities manipulation, which carries direct economic costs. The study contributes to the literature by providing one of the first comprehensive sector-level analyses of multiple earnings management channels in Nigeria, highlighting the need for sector-specific regulatory oversight, enhanced operational monitoring, and risk-based audit and investment strategies in emerging markets.
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    Tax Planning Strategies and Earnings Management Among Listed Conglomerates in Nigeria
    (Nigerian Journal of Accounting and Finance, 2025-12-31) Abdulraheem Olayiwola Kadir
    Earnings management remains a persistent challenge for corporate governance, particularly in Nigeria, where managerial discretion over reported earnings persists due to numerous issues among which are corporate tax-related decisions. Thus, this study investigates the effect of tax planning strategies on earnings management among listed conglomerates in Nigeria. A longitudinal research design was adopted, using secondary data drawn from audited financial statements of five (5) conglomerates listed on the Nigerian Exchange Group (NGX) between 2019 and 2024. The study employed a census sampling technique to ensure that only firms with complete financial disclosures were included. Data were analysed using panel regression analysis and the findings at 5% significance level indicate that thin capitalisation (β=0.312, p-value = 0.002) and capital intensity (β=0.227, p-value = 0.014) create avenues for earnings manipulation through leverage and depreciation discretion; CETR (β=0.284, p-value = 0.010) and DTAL (β=0.196, p-value = 0.025) reflect aggressive tax planning practices that may facilitate income smoothing and tax avoidance. The study concludes that tax planning strategies significantly influence earnings management behaviour among Nigerian conglomerates, highlighting the interplay between corporate financial discretion and regulatory gaps. It is recommended that regulatory authorities should strengthen oversight mechanisms by imposing more robust disclosure requirements on tax positions and uncertain tax treatments. Keywords: thin capitalization,