Firm Life Cycle and Earnings Management Practices of Quoted Manufacturing Companies in Nigeria

Abstract

The aim of the study is to examine the relationship between firm life cycle and earnings management behaviour of quoted companies in Nigeria. The study employs ex-post causal research design for the study. The sample for this study consist of 30 manufacturing companies quoted on the Nigerian Stock exchange with data extracted from the annual reports and accounts for the period: 2009-2018. Regression analysis was conducted and the findings of this study revealed that introductory life cycle stage does not significantly affects earnings management behavior of quoted firms in Nigeria. However, it was found that growth, mature and decline life cycle stages significantly affect earnings management behavior of quoted firms in Nigeria. Therefore, study recommends the need for effective corporate monitoring so as to discourage earnings management at all stages of the firm’s life cycle.