EARNINGS QUALITY AND FINANCIAL BEHAVIOUR IN NIGERIA

Authors

Keywords:

Earnings Quality, Financial Behaviour, financial statement

Abstract

The study examined the effect of earnings quality on financial behaviour of deposit money banks (DMBs) in Nigeria. The study used data extracted from the financial statements of listed DMBs in Nigeria for the period 2008 to 2017. The study also employed panel data multiple regression technique. The result found that earnings
quality has a positive and significant effect on cash balance of deposit money banks. The study concluded that earnings quality have positive and significant effect on financial behaviour of deposit money banks. In line with the conclusion, the study
recommended that the management of deposit money banks should deploy flexible approach in form of window service to enable them respond quickly to profit making opportunities. This will increase their profitability and discourage them from engaging in any form of opportunistic behaviour, manipulative accounting tendencies and tempering with the credibility of the financial statement.

Author Biographies

  • Yusuf Olatunji OYEDEKO, Federal University Oye Ekiti

    Department of Banking and Finance, Faculty of Management Sciences

  • Muhammed ZUBAIRU, Ahmadu Bello University

    Department of Business Administration, Faculty of Administration

  • Aliyu Abdullahi DANGANA, Ahmadu Bello University

    Department of Business Administration, Faculty of Administration

  • Regina SAMSON, Federal University Oye Ekiti

    Department of Banking and Finance, Faculty of Management Sciences

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Published

2019-06-25

Issue

Vol. 5 No. 1 (2019): IJMSR

Section

Articles