THE DETERMINANTS OF EARNINGS MANAGEMENT DECISIONS OF QUOTED FIRMS IN NIGERIA

This study investigated the factors that influence earnings management decisions in firms quoted on the Nigeria exchange group; while the study specifically examined the extent to which director’s shareholdings can positively determine earnings management; examine if share prices have significant effect on earnings management; determine if the adoption of IFRS has significantly influenced the level of earnings management; evaluate the extent to which political co nnections can influence earnings management decision; and determine the effect of tax aggressiveness on management decision to swap real activity earnings manipulation for accrual manipulations. The quantitative method of data analysis was adopted in the study. The population of this study comprised all companies quoted in the non-financial sector of the Nigerian Exchange Group as at 2024. Descriptive and inferential data analysis methods were adopted to present and analyze data. A significant relationship exists between tax aggressiveness and discretionary accrual management, and a non-significant relationship exists between tax aggressiveness and real activity earnings management in the non-financial firms quoted on the Nigerian Stock Exchange; and also, a non-significant and positive relationship exists between directors’ shareholdings and discretionary accrual manipulations, and a significant and negative relationship exists between directors’ shareholdings and real activity earnings management. Therefore, the study recommends that, corporate regulators in Nigeria should always watch out for high possibility of real activity earnings management in tax avoidance companies